Yamuna Expressway Industrial Development Authority (YEIDA) plans to move Insolvency Appellate Tribunal NCLAT against NCLT’s decision rejecting NCLT’s claims approving the resolution plan of Suraksha Group to acquire Jaypee Infratech Limited (JIL) has been created.
YEIDA will contest the rejection of its claims of additional compensation payable to farmers and others, which was rejected by the principal bench of the National Company Law Tribunal (NCLT) last week while approving the security group’s bid.
When contacted, Advocate Amar Gupta said, “YEIDA will challenge the NCLT order approving the scheme of protection to the extent that the scheme does not provide for adjudication of YEIDA’s claim.”
However, Gupta, partner, J Sagar & Associates, said the parties are also in discussion for an amicable resolution of the differences.
A YEIDA official, who did not wish to be quoted, said, “We will appeal within the stipulated time frame.”
Section 61(2) of the Insolvency and Bankruptcy Code states that an appeal against the order of the NCLT must be filed before the NCLAT within 30 days. However, the NCLAT may allow an appeal after the expiry of 30 days, if it is satisfied that there was sufficient cause for not filing it within the time limit.
Meanwhile, the NCLAT on Tuesday adjourned the petition filed by Jaiprakash Associates Ltd (JAL), which has challenged the NCLT order. 750 crore in Jaypee Infratech case.
NCLAT adjourned the hearing saying, “As prayed, list this appeal on March 16, 2022.”
YEIDA, which had entered into a concession agreement with Jaypee in February 2003, filed claims for the same. 6,111.59 crore, mainly on account of pending works and external development charges (EDCs), non-executed external development works and other future works.
It also sought 64.7 per cent additional compensation payable to farmers from whom it had acquired land. Accordingly, YEIDA had demanded/claimed approx. 1,689 crore for additional compensation payable to farmers.
However, the NCLT dismissed the claims saying “it does not find any illegality in treating the claim of YEIDA as operational debt by the SRA/security and making provision for its payment as per the provisions of IBC, 2016” “.
The Corporate Insolvency Resolution Process (CIRP) against JIL was initiated in August 2017 on an application filed by a consortium led by IDBI Bank.
In the fourth round of the bidding process to find a buyer for JIL in 2021, Suraksha Group won the bid with 98.66 per cent votes. At least 12 banks and more than 20,000 homebuyers have voting rights in the Committee of Creditors (CoC).
The text of this story is published from a wire agency feed without any modification. Only the headline has been changed.
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