SC extends time limit to resolve Jaypee Infratech’s insolvency
Exercising power under Article 142 of Constitution of India, the Supreme Court (SC) has extended the insolvency process of Jaypee Infratech effective today. The interim resolution professional (IRP) will now have a minimum of 180 days to find a resolution plan for the company as per the IBC code, which can be extended further to 90 days, if approved.
The bench of Chief Justice of India Dipak Misra and justices AN Khanwilkar and DY Chandrachud also ordered to constitute a fresh committee of creditors (CoC) in view of the amendment. The IRP has been ordered to invite fresh expression of interest in which Jaiprakash Associates Limited (JAL) or Jaiprakash Infratech Limited (JIL) will not be eligible.
The previous time-limit for resolution plan had ended on 12 May 2018. Ashwarya Sinha, advocate representing homebuyers said, “The judgment takes us back to square one as the home owners continue to get entagled in legal technicalties of IBC. We have a coordinate bench of the same court dealing with identically situated home owners of Amrapali, where NBCC has been roped-in to take over the project.
The only redeeming feature is that homeowners have significant voting power in the CoC meetings in view of the recent amendments.