Business India

SC directs Jaypee Associates to deposit Rs 2,000 cr

The Supreme Court on Monday directed Jaypee Associates to deposit Rs 2,000 crore with its registrar in pursuance of the ongoing insolvency proceedings against its sister concern Jaypee Infratech.

A bench of Chief Justice Dipak Misra, Justice A.M. Khanwilkar and Justice D.Y. Chandrachud directed that the amount should be deposited by October 27.

Putting the matter up for next hearing on November 13, the bench said in case Jaypee Associates intended to sell any of its assets to raise the money, it would require prior permission from the court.

The Allahabad bench of the National Company Law Tribunal’s (NCLT) by its August 9 order had appointed an Interim Resolution Professional (IRP) on the plea by the IDBI seeking recovery of Rs 526 crore from the company.

The apex court also restrained the Managing Director and all the directors of both the companies from leaving the country.

It said said these would include the people who were directors when the NCLT had passed the order appointing the Interim Resolution Professional on August 9.

However, the court excluded the directors nominated by the lender banks – IDBI, ICICI and SBI – from its order restraining them from travelling abroad.

It appointed senior counsel Shekhar Naphade and advocate Shubhangi Tuli to represent the home buyers at the meetings of the Committee of the Creditors that would consider the plan for the restructuring of the Jaypee Infratech by the Interim Resolution Professional.

The court order came as Attorney General K.K. Venugopal urged it to vacate or modify its September 4 order by which it had stayed the operation of August 9 order of NCLT.

The Attorney General told the court that it would result in the control of Jaypee Infratech being restored to its management and that if control of the Jaypee Infratech continues with its erstwhile management, then it would affect the rights of the creditors and the consumers as well.

Having secured the interest of the home buyers – who are in the category of unsecutred creditors, the court directed that suits and proceeding instituted against Jaypee Infratech would remain stayed in terms of the provisions of Insolvency and Bankruptcy Code, 2016 as IRP has been directed to remain in management of the Jaypee Infratech.

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