SC approves resolution plan for debt ridden Jaypee Infratech Ltd.

Soni Satti

The Supreme Court issued approval of resolution plan for debt-ridden Jaypee Infratech Ltd and remitted to the Committee of Creditors of JIL saying only state-owned NBCC and Suraksha Realty may file revised proposals and no new interest will be entertained for taking over the firm.

A three-judge bench in the judgment stated, “The matter regarding approval of the resolution plan stands remitted to the
Committee of Creditors of JIL and the time for completion of the process relating to CIRP of JIL is extended by another period of 45 days from the date of this judgment,”

The Bench held that the deposit amount of Rs 750 crore transferred to NCLT by Jaypee group in the court premise is the property of Jaiprakash Associates Ltd. and the court cannot approve the provision in the resolution plan on its usage by Jaypee group “However, the final treatment of the said amount of Rs 750 crores with accrued interest shall be determined by NCLT after the reconciliation of accounts between JAL and JIL and in terms of the directions contained in this judgment”.

The court added. Finally, the bench, comprising Justices A M Khanwilkar, Dinesh Maheshwari, and Sanjiv Khanna, contended that the resolution applicants should take notice of the facts and findings of the judgment and they can proceed with the information memorandum which is already issued by the insolvency resolution process (IRP) under the Insolvency and Bankruptcy Code, 2016.

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