The National Company Law Appellate Tribunal (NCLAT) has asked courts not to rely on portions determining compensation to farmers in Yamuna Expressway Industrial Development Authority's (YEIDA) claims in National Company Law Tribunal's (NCLT) March 7 order approving the resolution plan submitted by the Suraksha Group for Jaypee Infratech through the insolvency process.
The NCLAT has found substantial grounds to entertain and hear the appeal as NCLT's order virtually extinguishes YEIDA's claim of additional compensation farmers' compensation by allocating INR 10 lakhs.
YEIDA had filed claims for Rs 6,111.59 crore, mainly on account of pending works and External Development Charges (EDCs), unexecuted external development works, and other future works.
It had also sought 64.7 percent additional compensation payable to farmers from whom it had acquired land, raising a claim of approximately Rs 1,689 crore. However, Suraksha, the successful resolution applicant, had allocated only Rs 10 lakh towards EDCs, and NCLT rejected its claims for additional compensation payable to the farmers and others.
N Venkataraman, Additional Solicitor General (ASG) appearing for YEIDA, argued that the land which it gave to Jaypee Infratech is on lease and the company owns only leasehold interest.
Therefore, the transfer and monetisation of land can only be limited to the leasehold interest in the project land, and the ownership rights remain with YEIDA. He insisted that land parcels were acquired by YEIDA from hundreds of farmers, and they have to be compensated before Suraksha uses them, and the law cannot be unfair to these farmers.
The case will come up for hearing on May 29. In March 2023, the National Company Law Tribunal approved the resolution plan submitted by the Suraksha Group for Jaypee Infratech through the insolvency process, raising hopes for more than 20,000 homebuyers waiting for their apartments in Noida for over a decade.
The NCLAT has made it clear that this order will not halt the implementation of the resolution plan in relation to other claims.
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