Jaypee Infra IRP files application before Supreme Court seeking extension of insolvency process

By LE Desk

New Delhi, June 10, 2021: Jaypee Infratech’s Interim Resolution Professional (IRP) Anuj Jain has filed an application before the Supreme Court seeking extension of timeline for completion of its resolution process till the first week of July, The Economic Times reported.

State-owned NBCC and Suraksha group are in the fray to acquire the debt-laden realty firm Jaypee Infratech Ltd NSE(JIL) and complete over 20,000 pending flats for homebuyers.

The 45 days’ time granted by the Supreme Court to complete the Corporate Insolvency Resolution Process (CIRP) expired on May 8.

In the last meeting of JIL’s Committee of Creditors (CoC), Jain informed that an application was filed before the court on May 6 to seek an extension by 30 days, sources said.

On the instructions of the CoC members, Jain filed another application on June 3 seeking further extension by 30 days. The applications are likely to be heard in the first week of July, they added.

Jain informed the CoC that the CIRP of JIL has to be completed by July 7, subject to the Supreme Court’s decision on extension of timeline.

He also said all decisions taken by the CoC after May 8 related to the approvals of resolution plans submitted by the two contenders will be subject to the decision of the apex court on the two applications filed on May 6 and June 3 seeking extension.

Earlier this week, the financial creditors decided to consider the bids of both state-owned NBCC and Suraksha group to acquire the embattled realty firm at their next meeting scheduled on June 10 (Thursday).

Just before the start of the meeting of the CoC on Monday, Suraksha group submitted its revised bid, offering more funds to banks while reducing the timeline to complete some stalled projects for benefit of homebuyers.

The Mumbai-based firm did not submit its resolution plan on June 4 and rather sought at least seven days’ extension to sweeten its offer for both homebuyers and bankers. NBCC, however, submitted its resolution plan on June 4.

This is the fourth round of the bidding process in the matter of JIL bankruptcy case.

JIL went into the insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium.

In the first round of insolvency proceeding, the Rs 7,350-crore bid of Lakshadweep, part of Suraksha Group, was rejected by lenders.

The CoC had rejected the bids of Suraksha Realty and NBCC in the second round held in May-June 2019.

The matter reached the National Company Law Appellate Tribunal (NCLAT) and then the apex court.

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