Litigation News

NCLAT gives conditional approval to the implementation of NBCC Resolution Plan for Jaypee Infratech

Aditi Singh

The National Company Law Appellate Tribunal has given its conditional approval to the implementation of NBCC (India)'s Resolution Plan for Jaypee Infratech. [NBCC (India) vs ICICI & Ors]

The approval is subject to the outcome of the appeal concerning the modification of the resolution plan by the Adjudicating Authority.

The order was passed by a two-member bench of Acting Chairperson, Justice Bansi Lal Bhat and Member (Judicial), Justice Anant Bijay Singh in an appeal preferred by NBCC (India) Ltd, which is successful Resolution Applicant of Jaypee Infratech Ltd.

The appeal was made against an order by National Compnay Law Tribunal, Allahabad, modifying NBCC's Resolution Plan after the same was approved by the Committee of Creditors.

Vide its order, the NCLT had allowed objections of ICICI Bank and Yamuna Expressway Industrial Development Authority and directed payment to unclaimed Fixed Deposit Holders.

NBCC argued that the NCLT could not be allowed to intercede the business decision of the Committee of Creditors.

The NCLAT has issued notice in the appeal to the Respondents.

As far as the implementation of NBCC's resolution plan was concerned, it has been ordered,

Meanwhile, till further orders, the approved ‘Resolution Plan’ may be implemented subject to outcome of this Appeal. The Interim Resolution Professional may constitute ‘Interim Monitoring Committee’ comprising the ‘Successful Resolution Applicant’, i.e., the Appellant and the three major Institutional Financial Creditors, who were Members of the ‘Committee of Creditors’ as named above.

It has further ordered that the Resolution Professional, who would be part of the Interim Monitoring Committee, shall continue to be paid as may be deemed reasonable by the Interim Monitoring Committee.

These directions would last till the disposal of the appeal.

Advocates Prateek Kumar, Siddharth Srivastava, Mohit Kishore appeared for NBCC (India).

ICICI Bank was represented by Advocates Misha, Mahima Sareen. of Shardul Amarchand Mangaldas.

RP was represented by Advocate Sumant Batra.

Advocate Bishwajit Dubey of Cyril Amarchand Mangaldas appeared for IDBI Bank.

Read the Order:

NBCC (Inida) vs ICICI Bank & Ors.pdf
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