NCLAT annuls creditors’ voting on NBCC’s bid for Jaypee Infratech

NCLAT annuls creditors’ voting on NBCC’s bid for Jaypee Infratech

New Delhi, May 17: The National Company Law Appellate Tribunal (NCLAT) Friday annulled voting by homebuyers and lenders on NBCC’s bid to acquire debt-laden Jaypee Infratech, and allowed renegotiation on the offer by May 30.
Hearing a plea by IDBI Bank, seeking a stay or annulment of the voting process, a three-member NCLAT bench headed by Chairman Justice S J Mukhopadhaya also allowed nine homebuyers’ associations representing around 5,000 buyers to file intervention application.
The appellate tribunal also allowed the Committee of Creditors (CoC) to renegotiate on NBCC’s bid by May 30.
Fresh voting process will start from May 31, the bench said.
On Thursday, voting started to approve or reject NBCC’s bid to acquire Jaypee group’s realty firm. As many as 13 banks and over 23,000 homebuyers of Jaypee Infratech have voting rights in the CoC.
The voting process was to end on Sunday and the result was to be announced on May 20.
In its order on Friday, the bench said,”in the meantime, the voting already taken is annulled.”
IDBI Bank, the biggest lender to the debt-laden realty firm, had opposed NBCC’s bid saying it was conditional. It said NBCC’s offer for the company was conditional upon grant of approval to transfer Yamuna Expressway’s business.
The bench further said,”the CoC, if required, may renegotiate with NBCC by May 30, 2019 and will start fresh voting since May 31, 2019 and onwards.”
The appellate tribunal left it to the CoC to approve the resolution plan of NBCC “if it is in accordance with law.”
However, the bench said,”in case the CoC is not inclined to accept the plan they will not pass any order of rejection without prior permission of this Appellate Tribunal as the matter relating to their voting share and other financial creditors is pending consideration.”
While allowing intervention application of homebuyers, the bench said their representative can take legal assistance considering the fact that the allottees have no expertise in the legal field. “Such legal professional is allowed to attend meeting of CoC to assist the representative but will not cast any vote nor express any opinion in the meeting,” the order added.
Jaypee Infratech went into insolvency process in 2017 after the National Company Law Tribunal (NCLT) admitted an application by IDBI Bank-led consortium seeking resolution of the realty firm.
In the first round of insolvency proceedings, a Rs 7,350-crore bid of Lakshdeep, part of Suraksha Group, was rejected by lenders.
Later on in October 2018, interim resolution professional (IRP) Anuj Jain started a second round of bidding process to revive Jaypee Infratech on the direction of NCLT.
Earlier this month, creditors, including banks and homebuyers, rejected a bid of Mumbai-based Suraksha Realty through a voting process, following which the CoC decided to consider NBCC’s offer.

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