SC refuses approval to NBCC resolution plan for Jaypee Infra, remits it back to CoC

New Delhi: The Supreme Court Wednesday refused to approve the resolution plan of state-owned NBCC for the debt-ridden Jaypee Infratech Ltd (JIL) for its shortcoming in fulfilling the parameters of IBC and remitted it back to the Committee of Creditors (CoC) for its nod.

The top court directed that the resolution shall be completed within a period of 45 days from the date of this judgment.

A bench of Justices A M Khanwilkar, Dinesh Maheshwari and Sanjiv Khanna used the top court's plenary powers under Article 142 of the Constitution to do substantial and complete justice to the parties and in the interest of stakeholders of JIL .

The net result of the discussion and findings hitherto is that some of the terms and stipulations of the resolution plan of NBCC, which was voted for approval by 97.36 per cent of the voting share of the Committee of Creditors, do not meet with approval, it said.

The bench said the terms and stipulations of the resolution plan which do not meet approval are concerning -- the land providing agency, the dissenting financial creditor and the undischarged security interest of the lender of JAL. It said that except for these terms and stipulations in the resolution plan, all others stand approved.

The bench said that no new expression of interest will be entertained for taking over the firm and only state-owned NBCC and Suraksha Realty may file revised proposals.

Taking all the facts and circumstances into account and in keeping with the spirit and purport of the orders passed in the past, we are inclined to again exercise the powers under Article 142 of the Constitution of India and to enlarge the time for completion of CIRP concerning JIL while extending opportunity to the said resolution applicants Suraksha Realty and NBCC to submit modified/fresh resolution plans, which are compliant with the requirements of the Code and the CIRP Regulations and are in accord with the observations and findings in this judgment, it said.

The bench further added that it will be open to the Interim Resolution Professional (IRP) to invite modified/fresh resolution plans only from Suraksha Realty and NBCC respectively, giving them time to submit the same within 2 weeks from the date of this judgment.

The top court, which passed its verdict on a batch of appeals against the NCLAT's last year order and fresh petitions, said: It is made clear that the IRP shall not entertain any expression of interest by any other person nor shall be required to issue any new information memorandum .

The bench directed the IRP to complete the Corporate Insolvency Resolution Process (CIRP) within the extended time of 45 days from Wednesday.

The matter regarding approval of the resolution plan stands remitted to the Committee of Creditors of JIL and the time for completion of the process relating to CIRP of JIL is extended by another period of 45 days from the date of this judgment, the bench said in its 375-page verdict.