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​NCLAT annuls voting on NBCC’s Jaypee bid

Tribunal rules on IDBI plea for stay on the process, asks for fresh voting on May 31.

, ET Bureau|
May 18, 2019, 10.16 AM IST
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The NCLAT also allowed nine homebuyers' associations to file intervention applications.
MUMBAI: The appellate bankruptcy court has asked Jaypee Infratech’s lenders to conduct a fresh vote to decide on state-run construction company NBCC India’s bid for the realty developer, after annulling the process that had already begun.

The National Company Law Appellate Tribunal’s order on Friday came on a plea by IDBI Bank, a lender to Jaypee Infratech, seeking a stay or annulment of the voting process. A three-member bench asked the financial creditors to conduct fresh voting from May 31.

IDBI Bank had opposed the state-run building company’s bid for debt-hit Jaypee Infratech, terming it a conditional offer.

The bench also allowed the company’s committee of creditors (CoC) to renegotiate the offer with the sole bidder, NBCC.

On Thursday, buyers of homes in Jaypee Infratech’s projects and its financial creditors started voting on NBCC's proposal to acquire the company under the insolvency resolution process. The voting was to end on Sunday and the outcome declared the following day.

According to Friday’s NCLAT order, the CoC may approve the plan if it is in accordance with law. But, if the vote is to reject the bid, the committee must wait for the appellate tribunal’s clearance before passing the decision.

The NCLAT also allowed nine homebuyers' associations to file intervention applications.

The developer’s insolvency resolution process was scheduled to end on May 6, but the Allahabad bench of the National Company Law Tribunal had allowed it to continue until May 21.

The company went into insolvency in 2017 on an application by the IDBI Bank-led consortium.


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