The NCLAT bench has allowed the CoC to renegotiate the NBCC bid and has said that creditors can approve the proposal if it is in keeping with the law
New Delhi: The latest hurdle on the way to NBCC acquiring debt-ridden Jaypee Infratech has been placed by IDBI Bank which has sought a stay or an annulment of the vote that is currently underway. Jaypee Infratech’s Committee of Creditors (CoC), comprising of its lenders and homebuyers, started voting on NBCC’s bid on Thursday. Acting on IDBI Bank’s plea, the National Company Law Appellate Tribunal (NCLAT) annulled the voting on Friday.
The decision was taken by a three-member bench of the NCLAT headed by Chairman Justice SJ Mukhopadhaya. It asked the CoC to conduct fresh voting from May 31.
Why has IDBI opposed NBCC’s bid?
IDBI Bank, which is the biggest lender to the debt-ridden firm, had opposed NBCC’s bid on the grounds that it is conditional. It said that NBCC’s offer depended on the grant of approval to transfer Yamuna Expressway’s business to NBCC.
The NCLAT bench has also allowed the CoC to renegotiate the bid with NBCC. It has also said that creditors can approve the proposal if it is in keeping with the law. If rejected, the CoC will not be able to pass it until the NCLAT approves the rejection of the bid.
The NCLAT has also allowed nine homebuyers’ associations, representing around 5,000 homebuyers, to file intervention application.