Jaypee Infratech: NBCC questions on rejection of proposal, threatens to take legal action – jaypee infratech nbcc threatens to take legal action on questions on rejecting the proposal
The IRP had declared that the proposal of this construction giant is not in compliance with the Insolvency Code. It is noteworthy that NBCC was in the race to acquire debt-ridden land-holding company Jaypee Infratech as part of the insolvency process. He was competing with the security group of the same region.
NBCC has written a letter to the IRP stating that its proposal is legal and she knows very well what she has to do under the law and what are her responsibilities.
JP Infratech’s debtors committee has actually decided to start the voting process between lenders next week on the proposal of the security group on May 20.
The committee rejected the proposal of the NBCC citing non-compliance with certain provisions of the Insolvency Act. Voting for the acquisition will begin on Monday next week and will run until Thursday.
The NBCC, in a letter to JP Infratech’s IRP Anuj Jain, expressed displeasure over the decision of the debtor committee, stating that if its bid was not considered, it would approach the appropriate law forum.
The NBCC bid was rejected in the fourth round of the corporate insolvency resolution process.
The company said, “The IRP has taken this decision by going out of its jurisdiction and has misconstrued the provisions of the proposal.” The company said that … NBCC’s proposal was not in conformity with the rules. By giving, you have exceeded your jurisdiction set by the Supreme Court. ”
According to the NBCC, the IRP’s job is to assist the lender committee and not to decide whether the proposal conforms to the rules of law.
Significantly, the loan committee of Jaypee Infratech rejected NBCC’s bid citing non-compliance with certain provisions of the Insolvency Act.
In March this year, the Supreme Court had ordered bids for Jaypee Infratech only from the NBCC and the security group. The apex court also directed to complete the resolution process in 45 days. However, this deadline was completed on May 8 and JP had also filed a petition seeking extension of time in this regard.
JP Infratech went into insolvency process in August 2017 after the National Company Law Tribunal (NCLT) accepted an application from IDBI Bank-led bank group.
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