The Aryavarth Express
Agency(New Delhi): The National Company Law Appellate Tribunal (NCLAT) has set a firm deadline for resolving the ongoing issues between the Yamuna Expressway Industrial Development Authority (YEIDA) and the Suraksha group concerning the insolvency case of Jaypee Infratech. The tribunal emphasized that if the disputes are not settled by the second week of April, it will proceed to hear the appeal on its merits.
The background of this legal entanglement traces back to March last year when the National Company Law Tribunal (NCLT) approved the Suraksha group’s resolution plan for Jaypee Infratech, a company that had been under the insolvency resolution process since 2017. Despite this approval, the resolution process has been stalled due to petitions filed by YEIDA and Jaiprakash Associates, the original promoters of Jaypee Infratech, challenging the NCLT’s decision at the NCLAT.
During the latest hearing, YEIDA’s counsel reported that the Suraksha group’s proposal is still pending review by the Uttar Pradesh Government, with no final decision reached. However, the counsel expressed optimism that a resolution would be finalized shortly and requested the NCLAT to delay its appeal until after the second week of April, hoping for the disputes to be resolved by then.
The NCLAT, while agreeing to this request, clarified its stance: should there be no settlement by the next hearing, it will proceed to adjudicate the appeal based on its merits. Furthermore, the tribunal encouraged the Suraksha group to continue with the plan’s implementation and construction activities in the meantime.
Additionally, the appellate tribunal has instructed the Monitoring Committee, tasked with overseeing the insolvency process, to submit a status report within two weeks. This committee comprises the Interim Resolution Professional (IRP), representatives from Suraksha Realty, a representative for the institutional financial creditors, and an official representing the homebuyers.
The resolution of this case holds significant implications for over 20,000 homebuyers who have invested in Jaypee Infratech projects, many of whom have been waiting for a decade or more to secure their homes. Suraksha group has communicated its commitment to finding an amicable resolution with YEIDA, aiming to prioritize the interests of all stakeholders, including the homebuyer and farmer families affected by Jaypee Infratech’s financial troubles.
