07/03/2023

Approval of Resolution Plan for Jaypee Infratech Ltd. – Mr. Anuj Jain Interim RP Jaypee Infratech Ltd. Vs. Suraksha Realty Ltd. – NCLT Special Bench

Summary of judgment of NCLT (total 365 pages judgment) in approval of Resolution Plan of Consortium of M/s. Suraksha Realty Limited and M/s. Lakshdeep Investments and Finance Private Limited for Jaypee Infratech Limited (JIL) (Corporate Debtor) is now available in IBC Laws database.
Following are silent points of the summary:
• (1) Whether a Secured Creditor is entitled to choose the security interest of its own choice for enforcing?
• (2) Whether dissenting secured creditors have right to recover cost of enforcing security interest in case of enforced security interest?
• (3) Whether a Secured Creditor can be treated as an Unsecured Creditor and will be entitled to both the benefits under Section 53(1)(b)(ii) and Section 53(1)(d) both simultaneously??
• (4) Whether YEIDA is Secured Creditors as per Rainbow Decision?
• (5) Whether a Resolution Plan would have given immunity to the personal guarantors from that debt?
• (6) Whether Personal Guarantor has right to subrogation?
• (7) Other such as termination of the maintenance agreement etc.
Further, the Successful Resolution Applicant (SRA)/Suraksha has sought for 38 “Reliefs and Concessions”, some are: (i) Legal proceedings relating to Income Tax, (ii) Waived all the procedural requirements in terms of Section 66, Section 42, Section 62, Section 71 of the CA, 2013 in relation to reduction of share capital of the Corporate Debtor, (iii) Waiver from payment of stamp duty (iv) Non-compliances of the Corporate Debtor or further claims of the Governmental Authorities, (iv) Regularization all the loan accounts of the Corporate Debtor (v) Withdraw all legal proceedings, (vi) Initiation of any investigations, actions or proceedings against the Corporate Debtor, (vi) Resolution Applicants reserve their right to institute any investigation pertaining to any transaction(s) carried out by the ex-management of the Corporate Debtor, (vii) Necessary permissions or approvals under the Banking Regulation Act 1949, (vii) claim set-off of the entire Minimum Alternate Tax (MAT) credit as available to the Corporate Debtor, against the normal income-tax (viii) Losses already lapsed/not lapsed as on the Approval Date should be allowed to be carried forward, (ix) Capital gains/business income to the Corporate Debtor, (x) past litigations pending (xi) Waived of penalty (xii) Removal of the existing auditors of the Corporate Debtor etc.

Approval of Resolution Plan for Jaypee Infratech Ltd. – Mr. Anuj Jain Interim RP Jaypee Infratech Ltd. Vs. Suraksha Realty Ltd. – NCLT Special Bench Read Post »

Only JIL through its IRP and JAL has been allowed to participate in the reconciliation process, any of the other stakeholders of JIL and JAL are not having any rights in this reconciliation process – Suraksha Realty Ltd. Vs. Mr. Anuj Jain IRP of Jaypee Infratech Ltd. – NCLT Special Bench New Delhi

JIL has already been represented in the reconciliation process through its IRP. In our view, there cannot be two representations on behalf of JIL, especially when the resolution plan submitted by the Applicant/SRA is yet to be approved by this Adjudicating Authority and it has yet to step into the shoes of the Corporate Debtor. At present, the status of the Applicant/SRA is of only a stakeholder of the Corporate Debtor and not the Corporate Debtor itself, which is represented by the IRP. The reconciliation process was intended by the Hon’ble Supreme Court to be carried out solely between JIL and JAL and it has been specifically held that the reconciliation process is “…otherwise not be treated as determinative of the rights and obligations of any stakeholder in any of these two companies, JAL and JIL..”, therefore, we are of the view that the Successful Resolution Applicant has no say in the reconciliation process, till the time its Resolution Plan is approved by this Adjudicating Authority.

Only JIL through its IRP and JAL has been allowed to participate in the reconciliation process, any of the other stakeholders of JIL and JAL are not having any rights in this reconciliation process – Suraksha Realty Ltd. Vs. Mr. Anuj Jain IRP of Jaypee Infratech Ltd. – NCLT Special Bench New Delhi Read Post »

Whether all the workmen can together by adding their amount which is being claimed against the Corporate Debtor can cross the threshold set up under Section 4 of the Code – Sadashiv Nomaya Nayak & Ors. Vs. Gammon Engineers & Contractors Pvt. Ltd. – NCLAT New Delhi

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Whether all the workmen can together by adding their amount which is being claimed against the Corporate Debtor can cross the threshold set up under Section 4 of the Code – Sadashiv Nomaya Nayak & Ors. Vs. Gammon Engineers & Contractors Pvt. Ltd. – NCLAT New Delhi Read Post »

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