Jaypee, IBBI ask SC to constitute fresh Committee of creditors
Published: Jul 19, 2018
By TIOLCORPLAWS News Service
NEW DELHI, JULY 19, 2018: In view of the recent amendments in the Insolvency and Bankruptcy Code that improved the status of homebuyers, the Insolvency and Bankruptcy Board of India as well as Interim Resolution Professional urged the Supreme Court to revive corporate insolvency resolution process in the Jaypee Infratech case. It recommended to constitute a fresh committee of creditors in the light of the peculiar facts of the case. The main objective is "to work out" which resolution applicant had the capacity to pay the debt. Among others applicants includes Lakshdeep Investments and Finance Ltd & Cube-Kotak consortium as well as Singapore based Cube Highways. The Court was apprised of the fact that the resolution plans submitted to the resolution professional had any provision or safeguards for the homebuyers.
Keeping in mind that the two debt-ridden companies were neck deep in a litigation with several homebuyers over delay in completion of its housing projects. The Apex court was urged to avert the liquidation of JIL even after the expiry of the statutory deadline for its corporate insolvency resolution process.
Addl. Solicitor General appearing for Insolvency Board added that the case involved “genuine interests” of homebuyers and must be decided by the NCLT as per the statutory framework. However, the lawyer appearing for resolution profession argued that liquidation of the debt-ridden company would not help any stakeholders, especially the homebuyers. Jaypee Infratsructure Limited features in RBIs first list of NPA accounts having debt exposure of over Rs 9,783 cr in September 2017. IDBI Bank's insolvency plea against JIL was admitted by NCLT in August 2017. The parent company, Jaiprakash Associates Limited owes more than Rs 29,000 cr to various banks.