On August 8, 2017, IDBI Bank petitioned the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against Jaypee Infratech for defaulting on loans worth Rs 526 crore.
Jaypee insisted that its appeal, whether its proposal can also be considered, should be heard first. The next date of hearing is scheduled for October 22.
"We have been directed by the court to come up with a comprehensive resolution plan and it is in the works," sources told Moneycontrol.
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.
Supreme Court grants the embattled firm three weeks to file its resolution plan in a sealed envelope
On August 2, the apex court had ordered status quo for two weeks on insolvency proceedings after Jaypee Group challenged the July 30 order of NCLAT.
The status quo granted by the court will ensure that liquidation will not happen. The amendments to IBC have not yet received presidential assent and therefore the court deemed it fit to defer the matter by two weeks
SC to hear Jaypee Group's plea against the NCLAT order which allowed fresh bidding for debt-laden Jaypee Infratech and buyers plea that JIL not be sent into liquidation
All the banks and JAL had approached the NCLAT against the NCLT order. A stay was granted to all petitioners.
Debars Jaypee Associates Limited; allows NBCC to place fresh bid; directs RP and CoC to complete process of selecting new bidder within 45 days
Total income, however, rose to Rs 669.56 crore during April-June quarter of this fiscal from Rs 432.31 crore in the corresponding period of the previous year.
As per the changes to the IBC, there would be a deadline for completion of corporate insolvency resolution process within an overall limit of 330 days, including litigation and other judicial processes. At present, the deadline is 270 days.
A two-member NCLAT bench headed by Chairman Justice S J Mukhopadhaya also reserved its order over the plea of leading lenders to include them in the Committee of Creditors (CoC) of the Jaypee Infratech, which is presently going through insolvency resolution.
NCLAT has directed that representatives of banks, buyers and other stakeholders of the embattled firm appear before it on July 17 to consider how the NBCC bid could be 'recast' in a manner that is beneficial to all.
Next week, Supreme Court will be hearing homebuyers plea seeking not to send Jaypee Infratech Ltd into liquidation.
NCLAT also questioned banks on backdoor negotiations with Adani Group.
The development comes hours after the National Company Law Appellate Tribunal (NCLAT) clarified that it has not barred lenders from voting against NBCC's resolution plan.
NCLAT also directs the committee of creditors not to finalise rejection of the NBCC bid without the court's consent.
The voting on the NBCC bid began at noon on May 31 and is expected to continue for ten days until June 10.
The voting will be held from May 31 to June 10, sources said.
Adani Group will pay Rs 500 crore upfront in cash along with other fund infusions of Rs 1,700 crore to complete the project for homebuyers.
The Adani Group has also offered a total fund infusion of Rs 1,700 crore to complete the project for homebuyers, sources said.
The 12th committee of creditors meeting to take place on May 30, post which the resolution plan may be put to vote on May 31, sources said