NEW DELHI, Aug 2: The Supreme Court on Friday ordered status quo for two weeks on Jaypee Group’s plea against NCLAT order which allowed fresh bidding for debt-laden Jaypee Infratech.
A bench of justices A M Khanwilkar and Dinesh Maheshwari ordered status quo after the apex court was informed that Parliament had passed the proposed amendments in the Insolvency and Bankruptcy Code.
“We have not seen the amendment, let it come and we will see,” the bench said.
On July 30, the National Company Law Appellate Tribunal (NCLAT) had allowed fresh bidding for the cash-strapped Jaypee Infratech but barred its promoter Jaypee Group from participating in the auction.
To enable the fresh bidding process, the NCLAT extended the resolution period of Jaypee Infratech for another 90 days, which includes a 45-day window for the resolution professional (RP) and lenders of the debt-ridden firm to invite fresh bids.
The NCLAT direction came in view of lenders rejecting the resolution plan of state-owned NBCC and Suraksha Realty in the second round of bidding.
Jaypee Infratech went into insolvency in August 2017 after the National Company Law Tribunal (NCLT) admitted an application filed by an IDBI Bank-led consortium.
In the first round of insolvency proceedings conducted last year, the Rs 7,350-crore bid of Lakshdeep, part of Suraksha Group, was rejected by lenders.
The NCLAT had asked state-owned NBCC, whose bid was rejected by the CoC of Jaypee Infratech, to submit fresh resolution plan for the debt-ridden company.
The appellate tribunal had also rejected the plea of Jaiprakash Associates Ltd, the promoters of Jaypee Infratech, to be eligible to submit a bid.
“No liberty is given to Jaiprakash Associates Ltd.’, in view of the aforesaid observation and decision of Supreme Court in Chitra Sharma’ (Supra),” it had said.
On June 18, the Centre had informed the apex court that fresh amendments to the IBC give appropriate weightage to home buyers to protect their interest.
Lok Sabha on Thursday passed amendments to the Insolvency and Bankruptcy Code, with the government asserting that the spirit behind the law was not to allow companies to die.
Rajya Sabha had already passed the bill and with its passage in the lower house, the Insolvency and Bankruptcy Code was set to be amended.
The top court had said it might use its plenary power under Article 142 of the Constitution to protect the interest of over 21,000 home buyers in the JIL case, if their grievances were not addressed.
The court was hearing a plea which sought that JIL be not sent into liquidation, although the deadline for the corporate insolvency resolution process is over, as it would cause “irreparable loss” to thousands of home buyers.
On August 9 last year, the apex court ordered re-commencement of the resolution process against JIL and barred the firm, its holding company and promoters from participating in fresh bidding process.
It allowed the Reserve Bank of India to direct banks to initiate corporate insolvency resolution proceedings (CIRP) against Jaiprakash Associates Ltd (JAL), the holding company of JIL, under the IBC. (PTI)