SC orders fresh bidding for Jaypee Infra with home buyers in creditors panel
09 August 2018
The Supreme Court today ordered a fresh round of bidding for Jaypee Infratech Ltd under a reconstituted Committee of Creditors (CoC), which would also include home buyers who have invested money in the company, as per the amended Insolvency and Bankruptcy Code.
A three-judge bench headed by Chief Justice Dipak Misra also allowed the Reserve bank of India (RBI to direct banks to initiate insolvency proceedings against Jaiprakash Associates and ordered the 180-day insolvency resolution period to start afresh from today.
The bench comprising Chief Justice Dipak Misra, Justice A M Khanwilkar and Justice D Y Chandrachud also allowed fresh invitation of bids that will include other bidders in addition to the current three.
Jaiprakash Associates promoters of the 12 large corporate accounts identified by RBI for immediate insolvency action in June 2017, cannot bid for Jaypee Infratech.
The apex court also ordered the transfer of the Rs750 crore deposited by Jaiprakash Associates for Jaypee Infratech home buyers to NCLT, which will now decide on the disposal of the amount.
Home buyers who have invested in Jaipee Infatech projects had sued the company after lenders to Jaypee Infratech, led by IDBI Bank, moved the National Company Law Tribunal under the insolvency and bankruptcy code procedure.
Since the insolvency case would have undermined the delivery of residential apartments to homebuyers in Delhi, the homebuyers approached the Supreme Court seeking relief.
While the apex court did not stop the insolvency proceedings, it ordered that the committee of creditors must have representatives from the homebuyers, so that their interests are taken care of.
Adani Group, Cube Highways and Infrastructure Pte Ltd and Lakshdeep Investments were the three bidders in the fray, after the committee of creditors opened it for bidding. JSW Group, which had submitted its bid had been found ineligible under section 29A of the IBC.
Lakshdeep Investments was chosen as the highest bidder in the case. However, its bid had to be rejected as it did not garner majority votes.
Under such circumstances, Jaypee Infratech was to go into liquidation. But homebuyers again approached the Supreme Court, which helped the apex court order that the liquidation proceedings be put on hold till the promoter of the company Jaiprakash Associates Ltd deposits Rs2,000 crore as security by 15 June 2018. The company managed to deposit Rs750 crore.