NEW DELHI: In order to avoid further delay in execution of the resolution scheme to allow NBCC to take over Jaypee Infratech and complete construction of over 20,000 unfinished flats, the Supreme Court on Thursday transferred cases pending before the National Company Law Appellate Tribunal to itself to settle the issues once and for all.
A bench of Justices A M Khanwilkar and Dinesh Maheshwari passed the order on a plea of homebuyers seeking its intervention for implementation of NBCC’s resolution plan, which was approved by the Committee of Creditors and the NCLAT in March.
Senior advocate Jaideep Gupta and Gopal Shankarnarayanan said NBCC took the stand that it would not go ahead with the plan till cases pending in NCLAT are decided, delaying resumption of construction work.
With all the parties agreed that the apex court should itself decide the issue, the bench transferred the cases to the SC and posted the matter for hearing on August 31.
“Accordingly, it is directed that the above-mentioned cases pending before the NCLAT shall stand transferred in terms of this order to this court, to be heard along with the present appeals. In the meantime, we direct the Interim Resolution Professional to continue to manage the affairs of the subject company,” the bench noted.
Challenging an interim order of NCLAT, the homebuyers said the tribunal had erroneously directed the Interim Resolution Professional to constitute Interim Monitoring Committee (IMC), which is not there in the Insolvency and Bankruptcy Code, 2016.
Gupta contended that NCLAT order was without jurisdiction and it became binding on NBCC to implement the plan. NBCC, however, told the bench that the order passed by the appellate tribunal would have major financial implications and it could not implement the plan till all issues were adjudicated.
The Committee of Creditors (CoC) of Jaypee Infratech, which includes lenders and homebuyers, had in December approved NBCC to acquire the debt-hit realty firm. NBCC’s proposal received 97.4% of total votes with 39.6% of lenders and 57.7% of homebuyers backing the offer.
A bench of Justices A M Khanwilkar and Dinesh Maheshwari passed the order on a plea of homebuyers seeking its intervention for implementation of NBCC’s resolution plan, which was approved by the Committee of Creditors and the NCLAT in March.
Senior advocate Jaideep Gupta and Gopal Shankarnarayanan said NBCC took the stand that it would not go ahead with the plan till cases pending in NCLAT are decided, delaying resumption of construction work.
With all the parties agreed that the apex court should itself decide the issue, the bench transferred the cases to the SC and posted the matter for hearing on August 31.
“Accordingly, it is directed that the above-mentioned cases pending before the NCLAT shall stand transferred in terms of this order to this court, to be heard along with the present appeals. In the meantime, we direct the Interim Resolution Professional to continue to manage the affairs of the subject company,” the bench noted.
Challenging an interim order of NCLAT, the homebuyers said the tribunal had erroneously directed the Interim Resolution Professional to constitute Interim Monitoring Committee (IMC), which is not there in the Insolvency and Bankruptcy Code, 2016.
Gupta contended that NCLAT order was without jurisdiction and it became binding on NBCC to implement the plan. NBCC, however, told the bench that the order passed by the appellate tribunal would have major financial implications and it could not implement the plan till all issues were adjudicated.
The Committee of Creditors (CoC) of Jaypee Infratech, which includes lenders and homebuyers, had in December approved NBCC to acquire the debt-hit realty firm. NBCC’s proposal received 97.4% of total votes with 39.6% of lenders and 57.7% of homebuyers backing the offer.
Coronavirus outbreak
Trending Topics
LATEST VIDEOS
More from TOI
Navbharat Times
Featured Today in Travel
Get the app