IDBI, Lead Lender of Jaypee Infratech Approaches National Company Law Tribunal Seeking Extension

New Delhi : Debt-ridden Jaypee Infratech's lead lender IDBI on Monday approached the National Company Law Tribunal (NCLT) seeking extension of insolvency proceedings beyond the May 6 deadline as the process is still underway to find a buyer for the Jaypee group's realty firm.

The bank has approached the Allahabad bench of the NCLT court to extend the Corporate Insolvency Resolution Process (CIRP) as the deadline expires on May 6, sources said. The NCLT has posted the matter on May 6 for the next hearing.

Earlier, the NCLT had granted extension to the lenders and Interim Resolution Professional Anuj Jain to complete the CIRP.

On January 28, the NCLT had extended the period of the CIRP by another 90 days as 180 days mandated under the Insolvency and Bankruptcy Code (IBC) was coming to an end on February 5, 2019. Under the IBC, a resolution process has to be completed under 180 days with a further extension of 90 days to 270 days.

And if the company fails to complete the CIRP within the mandated 270 days, then the company goes for liquidation.

According to sources, IDBI requested the tribunal to deduct the litigation period at several judicial forums, which includes the National Company Law Appellate Tribunal (NCLAT) and the Supreme Court. IDBI's plea was supported by the representative of the home buyers, who have also got the status of financial creditors after amendments in the IBC.

However, the promoters of Jaypee Infratech have opposed any move to extend the resolution period.

In 2017, the NCLT admitted the application by an IDBI Bank-led consortium seeking resolution of Jaypee Infratech. In the first round of insolvency proceedings, the Rs 7,350 crore bid of Lakshdeep, part of Suraksha group, was rejected by lenders as it was found to be substantially lower than the company's net worth and assets.

In October 2018, the resolution professional started a fresh initiative to revive Jaypee Infratech on the NCLT's direction.

Jaypee Group's flagship firm Jaiprakash Associates Ltd (JAL) had submitted Rs 750 crore in the registry of the Supreme Court for the refund to buyers and the amount is lying with the NCLT. Jaypee Infratech is a subsidiary of JAL.

Lenders and home buyers would vote on April 30 on the bid of Suraksha Realty-led consortium, as it is only buyer left in the fray after bankers rejected the bid of state-owned NBCC.