Jaypee Case: YEIDA Plans To Challenge NCLT Decision To Reject Its Claims
YEIDA, which had entered into a Concession Agreement with Jaypee in February 2003, had filed claims for Rs 6,111.59 crore.
Yamuna Expressway Industrial Development Authority plans to move insolvency appellate tribunal NCLAT against NCLT's decision to reject its claims while approving the resolution plan of Suraksha Group to acquire Jaypee Infratech Ltd.
YEIDA will contest rejection of its claims for additional compensation payable to the farmers and others, which was rejected by the Principal bench of the National Company Law Tribunal last week while approving the bid of Suraksha Group.
When contacted, advocate Amar Gupta said, "YEIDA will be challenging the order of the NCLT approving plan of Suraksha to the extent the plan does not make adjudicate provisions for YEIDA's claim."
However, Gupta, a Partner at J Sagar & Associates, said the parties are also discussing for an amicable resolution of differences.
An official of YEIDA, who did not want to be quoted, said, "We will appeal within stipulated time frame."
Section 61(2) of the Insolvency and Bankruptcy Code stipulates that an appeal against NCLT order must be filed within 30 days before NCLAT. Though NCLAT may allow appeal after the expiry of 30 days, if it is satisfied that there was sufficient cause for not filing within the time frame.
Meanwhile, NCLAT on Tuesday adjourned the plea filed by Jaiprakash Associates Ltd., which has challenged NCLT order relating to the distribution of Rs 750 crore in the Jaypee Infratech matter.
"As prayed, list this appeal on March 16, 2022," NCLAT said while adjourning the hearing.
YEIDA, which had entered into a Concession Agreement with Jaypee in February 2003, had filed claims for Rs 6,111.59 crore, mainly on account of pending works and External Development Charges, unexecuted external development works and other future works.
It had also sought 64.7% additional compensation payable to farmers, from whom it had acquired land. Accordingly, YEIDA had raised a demand/claim of approximately Rs 1,689 crore towards the additional compensation payable to the farmers.
However, NCLT rejected the claims saying that it "find no illegality committed by the SRA/Suraksha by treating the claim of YEIDA as an operational debt and making a provision towards its payment in accordance with the provisions of IBC, 2016."
The Corporate Insolvency Resolution Process against JIL started in August 2017 on an application filed by IDBI Bank-led consortium.
In the fourth round of the bidding process to find a buyer for JIL in 2021, the Suraksha Group won the bid with 98.66% votes. As many as 12 banks and more than 20,000 homebuyers have voting rights in the Committee of Creditors.