NCLAT grants relief to JP Associates
Published: May 25, 2018
By TIOLCORPLAWS News Service
NEW DELHI, MAY 25, 2018: In a relief to Jaiprakash Associates, the National Company Law Appellate Tribunal today stayed the NCLT order which had directed the realty firm to return nearly 760-acre land to its subsidiary Jaypee Infratech.
The NCLAT also admitted the petition filed by the three lenders — Axis Bank, Standard Chartered Bank and ICICI Bank, and issued notices to the resolution professional (RP) of the Jaypee Infratech.
The NCLAT said that the finding of NCLT that fraud had been committed on the mortgaged property by Jaiprakash Associates to the banks was not based on evidence' or in accordance with law.
NCLAT had also said that the RP of debt-ridden Jaypee Infratech, may file reply, including evidence if any that mortgage was fraudulent or that mortgage was created in collusion with the directors or partners of the company. It further said that during the pendency of appeal Corporate insolvency resolution process (CIRP) would continue.