NEW DELHI: Thursday marked a setback for the debt-ridden Jaypee Group with the Supreme Court directing the re-commencement of the resolution process for Jaypee Infratech Ltd (JIL).
The SC also barred the firm, its holding company and their promoters from participating in the fresh bidding process.
To make matters worse, the court has also allowed the Reserve Bank of India (RBI) to direct the firm’s lenders to initiate corporate insolvency resolution proceedings against Jaiprakash Associates Ltd (JAL), the holding company of JIL, under the Insolvency and Bankruptcy Code (IBC).
The bench, headed by Chief Justice Dipak Misra and comprising justices A M Khanwilkar and D Y Chandrachud, observed that there was “no manner of doubt” that JAL and JIL lacked financial capacity and resources to complete unfinished housing projects in which 21,532 home buyers have not been given possession of their flats.
The bench also said that the initial period of 180 days for the conclusion of the resolution process in respect of JIL would commence from the day of the verdict, and if it becomes necessary to apply for further extension of 90 days, the NCLT Allahabad would pass appropriate orders in accordance with IBC provisions.