20,000 homebuyers are given relief
The National Company Law Tribunal (NCLT) in March authorized the Mumbai-based Suraksha Group’s offer to purchase Jaypee Infratech Ltd., providing relief to over 20,000 homebuyers.
New Delhi: The National Company Law Tribunal (NCLT) in March authorized the Mumbai-based Suraksha Group’s offer to purchase Jaypee Infratech Ltd., providing relief to over 20,000 homebuyers. After ending the hearing and reserving the order in November 2022, the resolution plan was adopted by the NCLT’s principal bench, which consists of two members and is presided over by president Ramalingam Sudhakar.
Homebuyers who have been waiting more than ten years for their homes were relieved when the Suraksha Group planned to finish almost 20,000 flats in Noida and Greater Noida. The decision was rendered roughly two years after the lenders’ committee approved the Suraksha Group’s bid, which was made about six years after the construction company started the insolvency process.
The Yamuna Expressway Industrial Development Authority, ICICI Bank, and other parties’ objection was rejected by the tribunal. According to Section 30(2) of the Insolvency and Bankruptcy Code (IBC) of 2016, the bench stated that none of the objections could be sustained or cause the resolution plan of Suraksha under consideration to be rejected.
The bench noted that, save in the situations mentioned in Section 30(2) of the IBC, 2016, it is a well-established legal principle that the adjudicating authority is not compelled to intervene with the decision made by the Committee of Creditors (CoC) in its business wisdom.
The decision, which also comes almost two years after the CoC approved the Suraksha Group’s offer, will remove a significant barrier to the completion of more than 20,000 housing units in a number of Jaypee Infratech Ltd. projects that are now in limbo (JIL). The housing units are dispersed around the national capital region’s Noida and Greater Noida.
The tribunal stated that the applicant would establish the monitoring committee as specified in the resolution plan within seven days of the passing of this ruling, and that committee would take all necessary actions to hasten the resolution plan’s adoption.
The tribunal ruled that Suraksha Group will provide homebuyers and allottees possession of the units strictly within the time range specified in the resolution plan and approved by this body. It stated, “The Monitoring Committee will oversee and monitor the progress of construction of units and related infrastructure projects on a daily basis and file the progress report before this Adjudicating Authority on a monthly basis.
It further said that the authorized resolution plan, including with any COC-approved addenda, would be binding on all corporate debtor stakeholders as of the day this order was passed. The plan’s terms and the implementation schedule outlined in it would be scrupulously followed.
JIL was one of the initial 12 companies against which the Reserve Bank of India (RBI) instructed the banks to initiate bankruptcy proceedings by contacting NCLT. A Corporate Insolvency Resolution Process (CIRP) must be finished within 180 days of the application’s admission, according to Section 12 (1) of the IBC. JIL, on the other hand, was a unique case that went through numerous rounds of court proceedings.
In the fourth round of the competition to identify a buyer for JIL in 2021, Suraksha Group won the bid with 98.66% of the votes cast.
