To ensure that there is no further delay in execution of the approved resolution plan of NBCC and homebuyers get possession of their homes, the Supreme Court - on August 6 - transferred to itself all the appeals pending before National Company Law Appellate Tribunal (NCLAT). The next date of hearing is on August 31.
IRP Anuj Jain has been directed to continue to manage the affairs.
The Wish Town project by Jaypee has been under the supervision of the interim monitoring committee since April 23. NBCC had moved NCLAT against NCLT’s order in March as it was unhappy with the modifications made in its resolution plan.
As many six Jaypee homebuyers associations had moved Supreme Court last week against the National Company Law Appellate Tribunal April order that gave conditional nod to state-owned-NBCC to implement its proposal to acquire debt ridden Jaypee Infratech and complete over 20,000 stalled flats.
Homebuyers Associations are represented by senior advocate Jaideep Gupta, assisted by advocates from P&A Law offices, namely Amit Kumar Mishra, Partner, Shashank Manish among others.
“The Supreme Court in its wisdom has transferred all appeals pending before NCLAT before the Supreme Court. It would now hear the matter on August 31. Our primary prayer before the SC is to save the order, start construction and deliver possession of units. No construction work has taken place on the site for the last five to six months,” advocate Shashank Manish told Moneycontrol.
“Homebuyers are elated and are hopeful that construction work will begin soon. They are hopeful that the apex court would pass a favourable order,” he said.
On July 30, a bench led by Justice AM Khanwilkar issued notice to NBCC, Jaypee Infratech’s Interim Resolution Professional Anuj Jain, IDBI and others on a joint appeal filed by homebuyers seeking immediate implementation of the NBCC’s resolution plan which had been approved by the Committee of Creditors and the National Company Law Tribunal on March 3.
Homebuyers through their associations had said that NCLAT had directed the IRP to constitute the Interim Monitoring Committee (IMC), despite there being no provision for the same in the Insolvency and Bankruptcy Code 2016.
A five-member interim monitoring committee was constituted by NCLAT to oversee the implementation of the resolution plan and ensure that the transition plan gets underway.
On March 3, NCLT had approved NBCC's bid to acquire JIL through an insolvency process. NCLT had also ordered that the Rs 750 crore deposited by Jaypee Infratech's parent firm Jaiprakash Associates Ltd (JAL) with the registry of the Supreme Court would be part of the resolution plan.
In the same month, NBCC had moved the National Company Law Appellate Tribunal (NCLAT) seeking reliefs on certain conditions related to farmers' compensation for land acquisition in Noida and Greater Noida in Uttar Pradesh. It had also sought relief on payments to be made to some dissenting financial creditors like ICICI Bank.
In its resolution plan, NBCC had proposed to complete over 20,000 pending flats in the next three-and-a-half years.
NBCC offered 1,526 acres of land to lenders under a land-debt swap deal. Apart from this, the state-owned firm has proposed to transfer the road asset to lenders.
More than 10,000 homebuyers and major lenders of Jaypee Infratech, including IDBI Bank and State Bank of India, had voted in favour of the resolution plan submitted by the government's construction arm NBCC to acquire the embattled real estate firm.
NBCC has proposed to complete over 20,000 pending flats in the next three-and-a-half years. In its bid in December, NBCC had offered 1,526 acres of land to lenders under a land-debt swap deal. On Yamuna Expressway, NBCC has proposed to transfer the road asset to lenders but before that it would take a loan of around Rs 2,500 crore against toll revenue to fund construction spend.
The December round of voting was the third round of bidding process to find a buyer for Jaypee Infratech, which went into Corporate Insolvency Resolution Process (CIRP) in August 2017.