NCLAT Extends Jaypee Infra Resolution Time, Allows New Bids
The National Company Law Appellate Tribunal (NCLAT) on Tuesday extended the resolution process of Jaypee Infratech (JIL) by 90 days, thereby allowing submission of fresh bids for the bankrupt realty company.
The extension would come into effect with the receipt of the appellate tribunal's order.
The two-judge Bench, headed by NCLAT Chairman S.J. Mukhopadhaya, however, barred Jayprakash Associates (JAL), the parent company of JIL, from bidding.
The order said the process of bidding and approval of a resolution plan by the committee of creditors (CoC) should conclude in 45 days.
The 90-day extension comes amid the lenders' request to exclude around 250 days, from September 17, 2018 to June 4, 2019, from the stipulated period for corporate insolvency resolution process, as during this period no bid could be voted upon in view of the confusion regarding the voting rights of the homebuyers.
Under the Insolvency and Bankruptcy Code (IBC), the resolution process of a company is mandated to be concluded within 270 days, failing which the company has to go for liquidation. The 270-day deadline for Jaypee Infratech ended on May 6.
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