NCLAT directs NBCC to implement JIL resolution plan

The National Company Law Appellate Tribunal (NCLAT) on April 22 directed state-run NBCC to implement the approved resolution plan for JIL, but subject to the final order in the matter.

The NCLAT’s direction came on petition by NBCC, which won the bid to acquire Jaypee Infratech. The public sector construction major had challenged modifications to its bid when it was approved by the National Company Law Appellate Tribunal and sought a stay on the implementation of the modified plan.

The appellate tribunal, however, declined to stay the implementation of the modified resolution plan.

The two judge bench headed by the acting NCLAT Chairman Justice Bansi Lal Bhat also told the Interim Resolution Professional to set up an ‘Interim Monitoring Committee’.

“Till further orders, the approved ‘Resolution Plan’ may be implemented subject to outcome of this appeal. The Interim Resolution Professional may constitute ‘Interim Monitoring Committee’ comprising of the ‘Successful Resolution Applicant’, i.e., the Appellant and the three major Institutional Financial Creditors, who were Members of the ‘Committee of Creditors’ as named above,” said the order.

The appellate tribunal issued notices to ICICI Bank, IDBI Bank among other respondents in the matter, directing them to reply within two others.

The matter’s next hearing is listed for May 15.

The NCLT’s Principal bench in March accepted NBCC’s resolution plan to acquire Jaypee Infratech, after the Committee of Creditors (CoC) of the bankrupt realty firm voted in favour of the NBCC resolution plan in December.