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SC refuses to allow promoters to bid for Jaypee Infratech

Team SoOLEGAL 17 Apr 2018 1:16pm

SC refuses to allow promoters to bid for Jaypee Infratech

New Delhi: Undergoing IBC process, the counsel for Jaypee Infratech Anupam Lal Das  requested the SC to ask the committee of creditors(COC) to consider the bid given by his clients.This was contested by counsel for Interim Resolution professional, Parag Tripathi, who said Under section 29 A  of Insolvency and Bankruptcy Code (IBC)  wilful  defaulter or an entity which is declared insolvent cannot participate in the bid and since Jaypee falls in that category, it cannot  bid. This argument was accepted by three judge SC bench headed by Chief Justice of India (CJI) Dipak Misra.

On being asked by the SC to speed up the process of resolution,Tripathi informed the court that COC is in the process of finalising the bid but any resolution has to have approval of 75% of the creditors.

Counsel for home buyers said IBC process is stuck.The impediment is in the form of legal provisions as 75% of creditors have to give consent under IBC where as in RERA , consent of two thirds of home buyers is required.The legal provisions are creating their own set of problems.

To this court asked the IRP professional to hasten the process of Resolution and further asked Jaypee to deposit another Rs 100 crore with the court registry on or by May 11 for construction of flats of homebuyers.



Tagged: SC   IBC   IRP   Jaypee Infratech  
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