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NCLAT extends Jaypee Infratech’s resolution period by 90 more days

A two-member bench of NCLAT asked NBCC, whose bid was rejected by Jaypee Infratech's CoC, to submit a fresh bid for acquiring the company
New Delhi: The National Company Law Appellate Tribunal (NCLAT) extended the resolution period of debt-ridden Jaypee Infratech by another 90 days and directed its resolution professional (RP) to invite fresh bids on Tuesday. The extension will take effect from the receipts of the order.

RP gets 45 days to invite bids

A two-member bench headed by Chairman Justice SJ Mukhopadhaya gave 45 days to the RP to complete the process of inviting fresh bids. It also asked the RP and the Committee of Creditors (CoC) of Jaypee Infratech to finish the process of selecting new bidders.

Other decisions

NCLAT also rejected the plea of Jaiprakash Associates Ltd, the promoters of Jaypee Infratech, to submit a bid when fresh bids are invited by the RP. Along with this, the tribunal asked state-owned NBCC, whose bid was rejected by Jaypee Infratech’s lenders, to submit a fresh bid for the debt-ridden company. This will also allow Adani Enterprises, which has been keen on pursuing Jaypee Infratech, to throw its hat in the ring.

The backdrop

Lenders had been asking the appellate authority to exclude the 250 days from September 17, 2018, to June 4, 2019, from the stipulated period for Corporate Insolvency Resolution Process (CIRP), as this time was taken by the National Company Law Tribunal (NCLT) to decide on the voting rights of the homebuyers.