The National Company Law Appellate Tribunal (NCLAT) has given an ultimatum to the Yamuna Expressway Industrial Development Authority (YEIDA) and Suraksha group to settle their issues over the Jaypee Infratech project by the second week of April. If the issues are not resolved by then, the NCLAT will proceed with the case.
Settlement Awaited for Insolvency Resolution
Jaiprakash Associates, the original promoter of Jaypee Infratech, entered into the insolvency resolution process in 2017. In March last year, Suraksha group’s resolution plan was cleared by the National Company Law Tribunal (NCLT). However, the process has been hindered as both YEIDA and Jaiprakash Associates filed petitions challenging the approval.
Proposal Still Under Consideration
During the recent proceedings, YEIDA’s counsel informed the appellate tribunal that the proposal submitted by SRA (successful Resolution Applicant), Suraksha group, is still under consideration by the State Government and no final decision has been made yet. The counsel also mentioned that the proposal should be finalized within a short period of time, ideally by the second week of April.
NCLAT’s Decision and Monitoring Committee
In response, NCLAT made it clear that if no settlement is reached by the next date, the appeal will proceed to be heard on its merits. It further stated that Suraksha group is allowed to proceed with the implementation of the plan and the construction. Additionally, the appellate tribunal has directed the Monitoring Committee, established to oversee the insolvency process, to file a status report within two weeks. The committee consists of an Interim Resolution Professional (IRP), representatives from Suraksha Realty, institutional financial creditors, and homebuyers.
Relief for Homebuyers
The implementation of Suraksha group’s resolution plan will bring relief to over 20,000 homebuyers who have invested in Jaypee Infratech projects. The plan aims to provide an amicable solution for the benefit of all stakeholders, including the homebuyer families who have been waiting for their homes for the past 10 to 12 years, as well as the farmer families. The successful resolution of these issues will mark a significant milestone in the long-pending resolution of the Jaypee Infratech insolvency case.
Way Forward
The NCLAT’s directive to settle the issues between YEIDA and Suraksha group by mid-April underscores the urgency and importance of resolving the dispute. With the proposal still under consideration by the State Government, both parties need to work collaboratively towards a settlement for the greater benefit of all stakeholders involved. The completion of the Suraksha group’s resolution plan will not only provide relief to homebuyers but also contribute to restoring confidence in the real estate sector. In conclusion, the NCLAT’s intervention and the ongoing proceedings offer hope for the timely resolution of the Jaypee Infratech insolvency case. It remains to be seen whether the YEIDA and Suraksha group will be able to reach a settlement within the given timeframe.
