Jaypee case: Suraksha objects to scheduled CoC meet to discuss NBCC offer; warns legal action

New Delhi: The creditors' panel of Jaypee Infratech Ltd (JIL) will meet on Monday morning to discuss submissions made by state-owned NBCC, a move that has been strongly objected to by Suraksha group that also warned of legal recourse in case voting on its offer does not materialise as scheduled.

The sudden meeting of the Committee of Creditors (CoC) was decided upon after NBCC shot off a strongly-worded letter to the Interim Resolution Professional (IRP) Anuj Jain questioning his jurisdiction in rejecting the company's offer for the bankrupt JIL.

The CoC had on May 20 decided to put to vote the offer made by Suraksha group.

According to sources, the CoC meeting has been scheduled from 10 am till noon. Interestingly, the voting on the Suraksha group's bid is to commence from noon on May 24 (Monday) and close at 5 pm on May 27.

The sources said ratification and discussion on NBCC's addendum dated May 22 to its resolution plan as well as the next steps in the CIRP (Corporate Insolvency Resolution Process) are part of the agenda for the CoC meeting.

The IRP took the decision to call the CoC meeting as five lenders — SBI, IIFCL, IDBI, UBI and LIC — requested him to convene the meeting.

In a regulatory filing on Sunday, Anuj Jain informed shareholders that a meeting of the CoC is scheduled on May 24.

The lenders' request followed NBCC's letter, dated May 23, to the IRP questioning his jurisdiction. The public sector firm had also suo-motto submitted a 14-page addendum to further clarify queries raised by the lenders.

Suraksha group has strongly objected to the creditor panel's meet on May 24 to discuss the NBCC's addendum to its final bid, which was submitted on May 18 after the 4 pm deadline.

The Mumbai-based firm has threatened to take legal recourse against lenders as well as the IRP if there are any delays and change in the voting process already approved on its bid.

Suraksha group has conveyed its objections in a letter to IRP Anuj Jain and the CoC, seeking fairness and transparency in the insolvency process.

"We wish to put on record strong objections to such actions to ratify and discuss the resolution plan of the other resolution applicant at this late stage...," Suraksha group said in the letter.

Listing out grounds for its strong objection, Suraksha group said the company had submitted the resolution plan on May 18 within the stipulated time of 4 pm.

NBCC's plan was submitted not only after stipulated timelines but also after opening and circulation of the Suraksha plan to CoC members, it added. Suraksha group also said that "in the interest of fairness and transparency of the process, the CoC should not have even considered the plan submitted by NBCC on May 18, 2021".

If the resolution plan itself ought not to have been admitted, it is obvious that any addendum to such resolution plan cannot be wadmitted, Suraksha argued.