Deposit Rs 1000 cr by June 15, SC tells Jaiprakash Associates

Lloyd Doyle
May 17, 2018

The Supreme Court on Wednesday ordered Jaiprakash Associates Ltd (JAL) to deposit Rs 1,000 crore in court by June 15 even as new complications and players emerged in the eight-month-long proceedings undertaken by SC to ensure refund to homebuyers in JAL's sister concern's delayed housing projects. However, if the company defaulted on payment, the liquidation proceedings will continue.

On August 23 previous year, the SC had agreed to hear a PIL filed by Chitra Sharma, on behalf of thousands of homebuyers in JIL's delayed housing projects, challenging the NCLT proceedings initiated by IDBI Bank and others under the Insolvency and Bankruptcy Code, 2016, under which homebuyers had no say in the liquidation process of a financially distressed company.

Jaypee counsel Anupam Lal Das informed the Bench headed by Chief Justice of India Dipak Misra that all efforts were being made to balance the interests of homebuyers and creditors.

It had sought a direction for restraining the National Company Law Tribunal (NLCT) at Allahabad from proceeding further with the insolvency proceedings.

Finding no reason to delay further the payment due towards homebuyers, the Bench, also comprising Justices AM Khanwilkar and DY Chandrachud gave time till June 15 to JAL for depositing another Rs 1,000 crore.

The apex court had earlier directed JAL to deposit Rs 20 billion with the apex court Registry.

Jaiprakash Associates pleaded that its proposed revival plan for Jaypee Infratech should be considered afresh by the Committee of Creditors (COC), as liquidation of Jaypee Infratech was neither in the interest of creditors, nor in the interest of home buyers.

The insolvency resolution professional (IRP) Anuj Jain also urged the apex court to allow them to go forward with the resolution plans of Adani Group, Kotak-Realty-Cube Highways or Lakshadweep, which was outrightly reject by SC as the deadline for resolution process has ended. The court asked Agarwal to see if any of those seeking refunds want to change their stand and seek possession instead.

The company requested the court to consider staying the liquidation proceedings.

Other reports by Iphone Fresh

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