SC refuses to stay bidding process

BIDDING HAD STARTED TO RAISE MONEY FOR COMPLETION OF THE DEVELOPER’S DELAYED PROJECTS

NEWDELHI: The Supreme Court on Monday refused to stay the bidding process under Jaypee Infratech Ltd’s resolution process that was initiated to raise money for completion of the developer’s delayed projects as part of its debt resolution process.

“The bidding process will continue before the interim resolution professional (IRP),” said Chief Justice Dipak Misra.

Jaypee Infratech is among the 12 companies against whom the Reserve Bank of India (RBI), through its 13 June directive, had asked banks to file insolvency petitions.

Jaiprakash Associates Ltd (JAL), the parent company of Jaypee Infratech, told the court that it had deposited ₹550 crore against its liability of ₹2,000 crore that it was required to furnish under a September order to protect the interest of home buyers.

Amicus curiae Pawan Shree Agrawal also told the court that claims of approximately ₹1,150 crore had been received on the online portal where home buyers could submit their claims for refund or possession.

On 22 November, the court had restrained independent directors and promoters of JAL and their family members from transferring any personal assets or property without the court’s permission to safeguard home buyers’ interests.

They will be held for criminal prosecution or contempt of court if found in violation of the order, the court held.

The court was hearing an application filed in a public interest litigation by Delhi resident Chitra Sharma, who has booked a home in a Jaypee Infratech project.

On 4 September, the apex court had stayed an order passed in August by the Allahabad bench of the National Company Law Tribunal (NCLT), which initiated insolvency proceedings against Jaypee Infratech. A day later, IDBI Bank Ltd approached the court, seeking restoration of insolvency proceedings against Jaypee Infratech. The case will be heard next on 12 February.