The Centre informed the Supreme Court that amendments to the Insolvency and Bankruptcy Code (IBC) would ensure the interest of all stakeholders of embattled real estate firm Jaypee Infratech.
This was stated at the hearing on July 18, to the bench of Justices AM Khanwilkar and Dinesh Maheshwari. The next date of hearing is August 01.
The seven amendments were cleared by the Cabinet on July 17.
One amendment which seeks to lower the threshold for the resolution plan to 50 percent of the committee of creditors (CoC) from the current 66 percent, may favour homebuyers, advocate Ashwarya Sinha said. Sinha added that altering these terms would make it a lot easier for the resolution to sail through.
As per the changes, there would be a deadline for completion of corporate insolvency resolution process within an overall limit of 330 days, including litigation and other judicial processes. At present, the deadline is 270 days.
This would give us 60 more days, he said.
The amendments also make the resolution plan binding on all stakeholders, including the Centre, any state government or local authorities, to whom a debt in respect of the payment of the dues may be owed.
The IBC, 2016 has been amended twice so far. The Cabinet has approved the Insolvency and Bankruptcy Code (Amendment) Bill, 2019.
Appearing for the government, Additional Solicitor General Madhvi Diwan had informed the apex court on July 11 that it was working on a uniform proposal to address the grievances of homebuyers who are stuck with incomplete projects for almost a decade.
Diwan further said that the same would be submitted during the pending Unitech case by July 23, as per the SC direction in that matter.
On July 17, the National Company Law Appellate Tribunal (NCLAT) made it clear that the resolution applicant would have to protect the interests of around 23,000 Jaypee homebuyers, and directed banks to submit the terms and conditions for fresh bidders in the resolution process.
The SC had on August 09, 2018 ordered re-commencement of the resolution process against Jaypee and allowed the Reserve Bank of India to direct banks to initiate corporate insolvency resolution proceedings (CIRP) against Jaypee's holding company Jaiprakash Associates (JAL) under IBC.
Jaypee Infratech went into insolvency process in 2017 after the NCLAT admitted an application by an IDBI Bank-led consortium seeking resolution of the realty firm.
vandana.ramnani@nw18.com
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