22 July 2019: The National Company Law Appellate Tribunal (NCLAT) on Monday reserved the order over IDBI Bank’s request to extend Jaypee Infratech’s (JIL) resolution process by excluding around 250 days from the ongoing process.
The two-judge bench headed by NCLAT Chairman Justice S.J. Mukhopadhaya will pass the order in its next hearing on July 29.
The lead banker to the bankrupt realty firm had in the previous hearing on Friday told that on September 17, 2018, an application was filed in the National Company Law Tribunal (NCLT) for clarification on the apartment allotees’ voting share and the tribunal decided on it on June 4, 2019.
The lenders wanted this period during which no bid could be approved by the Committee of Creditors (CoC) to be excluded.
Under the Insolvency and Bankruptcy Code (IBC), the resolution process of a company is mandated to be concluded within 270 days, failing which the company has to go for liquidation. The 270-day deadline for Jaypee Infratech ended on May 6.
The appellate tribunal also asked Jaypee Associates Ltd (JAL) to file a submission on its stand on liquidation and extension of the process and what it sees as the way forward, after the company asked the tribunal not to extend the process, while saying that it did not want liquidation of the firm.
Justice Mukhopadhaya observed that if the process is not extended, the only possible step would be liquidation.