NBCC Raises Questions On Jaypee Infratech’s IRP
NBCC raises questions on Jaypee Infratech’s IRP, says IRP goes out of its jurisdiction and rejects bid.
The state-run NBCC has questioned the statutory jurisdiction of the Insolvency Resolution Promotional (IRP) of Jaypee Infratech Limited (JIL) following the rejection of its bid.
The company has also demanded voting on its bid for NBCC. JIL’s IRP had disqualified NBCC’s bid citing failure to selectively comply.
In a letter to IRP, NBCC has stated its offer for Jaypee Infra is in compliance. The company said it had full knowledge of its responsibilities to meet compliance.
On Thursday (May 20) this week, Jaypee Infratech’s Committee of Lenders (COC) decided to vote only on the bid of the second bidder Suraksha Group.
NBCC’s offer was rejected with the argument that in terms of financial creditors, its bid does not meet the selective terms of the Insolvency and Bankruptcy Code (IBC).
Voting on the security group’s bid is scheduled for Monday (May 24) to Thursday (May 27) next week.
NBCC in its letter said that by disqualifying its bid for compliance, IRP has violated the limits laid down by the Supreme Court for itself.
According to the company, the job of RRP is only to help the lenders’ committee, not to tell the committee whose resolution process is within the scope of the law and whose not.
Earlier sources said that the IRP in its report called the bid of NBCC invalid on select standards of IBC. The NBCC also said in the letter that in case it is not heard, it reserves the right to present its case on the appropriate forum.
It is noteworthy that in the fourth phase of the insolvency process for debt-strapped JP Infratech, the final bid was made on Wednesday this week.
It is also interesting to note that the bid of NBCC was accepted by the COC and National Company Law Tribunal (NCLT) in the last months of the year 2019 and under the third phase at the beginning of last year.
The company that won the final bid is to complete the construction of more than 20,000 flats under the stuck real estate projects of Jaypee Infratech.
