The development comes nearly six years after the debt-ridden company entered into the insolvency proceedings.
The ruling will pave the way for the completion of more than 20,000 housing units in various stalled projects of Jaypee Infratech Ltd (JIL) spread across Noida and Greater Noida in the national capital region.
A monitoring committee will be established by the Interim Resolution Professional (IRP) applicant, which will oversee the implementation of the resolution plan.
The committee, to be constituted as per the resolution plan, will be set up in seven days.
The resolution plan also mandates that the successful resolution applicant delivers the units to the homebuyers according to the timeline set forth in the plan.
The Suraksha group had proposed to complete the construction of the remaining flats since anxious homebuyers have been waiting for over 10 years.
Timeline of events
On November 22 last year, NCLT had reserved its order over the plea filed by the IRP of Jaypee Infratech Ltd (JIL) seeking approval for Suraksha group’s bid.
In June 2021, Suraksha group received the approval of the Committee of Creditors (CoC), which includes banks and home buyers, to takeover JIL.
JIL was among the first list of 12 companies against whom the Reserve Bank of India (RBI) had directed the banks to approach NCLT for initiation of insolvency proceedings.
Section 12 (1) of the Insolvency and Bankruptcy Code (IBC) mandates a CIRP to be completed within a time frame of 180 days from the date of admission of the application. Subject to certain conditions, CIRP can be extended and completed within 330 days, including any extension and the time taken in legal proceedings.
CIRP refers to Corporate Insolvency Resolution Process.
However, JIL was an exceptional case that faced several rounds of litigations.
In the fourth round of the bidding process to find a buyer for JIL in 2021, Suraksha group had won the bid with 98.66 per cent votes. The company had got 0.12 per cent more votes than state-owned NBCC which was also in the fray.
As many as 12 banks and more than 20,000 homebuyers have voting rights in the CoC.
CIRP against JIL was started in August 2017 over an application by an IDBI Bank-led consortium.
In its final resolution plan, Suraksha group offered to bankers more than 2,500 acres of land and nearly Rs 1,300 crore by way of issuing non-convertible debentures.
It has also proposed to complete all pending flats over the next four years.
JIL”s lenders have submitted a claim of Rs 9,783 crore.
In the first round of insolvency proceedings in 2018, the Rs 7,350 crore-bid of Lakshadweep, part of the Suraksha group, was rejected by the lenders.
The CoC had rejected the bids of Suraksha and NBCC in the second round held in May-June 2019.
In November 2019, Supreme Court directed that the revised bids be invited only from NBCC and Suraksha. Then, in December 2019, the CoC approved the resolution plan of NBCC with a 97.36 per cent vote in favour during the third round of the bidding process.
In March 2020, NBCC had got approval from the NCLT to acquire JIL.
However, the order was challenged before the NCLAT and later in the Supreme Court.
On March 21, 2021, the apex court ordered for fresh round of bidding between the NBCC and the Suraksha group only.
(With inputs from PTI)
