SC directs resolution professional to consider representation of JAL on revival plans as per law

SC directs resolution professional to consider representation of JAL on revival plans as per law
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New Delhi, Apr 16: The Supreme Court on Monday directed the Resolution Professional (RP) Anuj Jain to consider the representation of the parent company JP Associates (JAL) on revival plans as per law and also granted permission to two directors of JP Associates to travel abroad.
It directed the resolution professional not to finalise the resolution plan without its approval. The next date of hearing has been fixed for May 11.
The bench headed by chief justice Dipak Misra on Monday allowed JAL to submit a resolution plan to RP but said it should be subject to compliance with applicable laws. “The RP said that there is bar to consider the proposal of the company and associate companies. To which it said that it can consider it and reject it if it considers that it is against the law. The RP can reject it under Section 29 A of the IBC,” says Ramakant Rai, counsel, Trilegal, who is advising Jaypee homebuyers.
“The court allowed two directors of the company to travel abroad. One will be travelling to Nepal and Bhutan and the other to US for admission of his child,” said advocate Pawan Shree Agarwal, amicus in the case.
At the last hearing on March 21, the Supreme Court had ordered the real estate company to deposit Rs 200 crore by May 10 with the court registry in two installments for paying back home buyers who have opted for refund instead of getting possession of flats.
The firm had deposited Rs 100 crore on April 12 and has been ordered to deposit the next tranche before the next hearing. The realty firm has deposited Rs 650 crore so far with the apex court registry.
The bench also directed the resolution professional not to finalise the resolution plan without its approval.
At the hearing on Monday, homebuyers argued through their counsel that the plan being finalised by committee of creditors (COC) had certain unfair components. “The court is likely to consider the issue and will examine the fairness of the proposal once the resolution plan has been finalised by the resolution professional,” Rai said.
As per reports, the likely bidder has proposed to submit Rs 10,000 crore out of that Rs 7000 crore is expected to go to banks and Rs 3000 crore to homebuyers. “We argued that this is unfair. It should be other way round. Court has said it will examine the fairness of the proposal once the proposal comes in after finalisation by the committee of creditors. It will look into it on May 11,” Rai said.

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