SC orders status quo in Jaypee plea against NCLAT order

The Supreme Court of India.

New Delhi, ┬áThe Supreme Court on Friday ordered status quo, for two weeks, on Jaypee Group’s plea against the National Company Law Appellate Tribunal (NCLAT) order barring parent company Jaypee Associates Ltd from bidding for Jaypee Infratech Ltd (JIL).

The order by a bench of Justices A. M. Khanwilkar and Dinesh Maheshwari came after they were informed that the Parliament had passed amendments to the Insolvency and Bankruptcy Code.

The court said that it has not seen the amendment till now and thereafter deferred the matter.

On July 30, the NCLAT extended the resolution process of JIL by 90 days, thereby allowing submission of fresh bids for the bankrupt realty company.

The tribunal 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 home buyers.

Under the Insolvency and Bankruptcy Code, 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 JIL ended on May 6.