Thursday, July 25, 2024

NCLAT Sets Firm Deadline for YEIDA and Suraksha Group to Resolve Jaypee Infratech Disputes

The National Company Law Appellate Tribunal (NCLAT) has issued a resolute ultimatum, directing the Yamuna Expressway Industrial Development Authority (YEIDA) and the Suraksha group to expeditiously resolve their lingering disputes concerning Jaypee Infratech by the second week of April. Should these issues persist beyond the specified timeframe, the NCLAT has unequivocally stated its intent to proceed with the case. Notably, the Suraksha group’s meticulously crafted resolution plan for Jaypee Infratech secured approval from the National Company Law Tribunal (NCLT) in March of the previous year. However, the forward momentum has been significantly impeded by petitions lodged by both YEIDA and Jaiprakash Associates.

Jaiprakash Associates, the original progenitor of Jaypee Infratech, had initiated insolvency resolution proceedings back in 2017. During the most recent hearing on February 19, YEIDA reported that the Suraksha group’s proposal had been formally presented to the Uttar Pradesh Government and was currently under careful consideration. Nevertheless, in the latest proceedings, YEIDA’s legal representative conveyed that the state government had yet to make a conclusive decision on the submitted proposal. In response, the counsel proposed that a decision should be reached expeditiously by the second week of April, emphasizing that if no resolution is achieved by then, the NCLAT should proceed to hear the appeal on its substantive merits.

The NCLAT, in response, made it explicitly clear that in the absence of a recorded settlement by the specified date, the appeal would proceed to be heard on its merits. Additionally, the NCLAT granted the Suraksha group the latitude to implement its plan and continue with the construction activities. Concurrently, the Monitoring Committee, tasked with overseeing the intricacies of the insolvency process, has been instructed to furnish a comprehensive status report within the next two weeks.

Concerns were raised during the proceedings by representatives of homebuyers, asserting that despite the absence of any interim order restraining progress on the project, the Suraksha group has yet to initiate the anticipated project. The successful realization of the Suraksha group’s resolution plan carries substantial significance for over 20,000 homebuyers who have vested interests in Jaypee Infratech projects. In the latest communication, the Suraksha group informed YEIDA of its proposal for an amicable resolution, emphasizing its commitment to the collective benefit of all stakeholders, including the protracted expectations of homebuyer families spanning a decade and the welfare of approximately 10,000 farmer families involved in the project.

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