JAL seeks approval to sell assets to deposit Rs 600 cr

Jaiprakash Associates (JAL) on Monday told Supreme Court it would deposit Rs 600 crore more to refund the home buyers if it was allowed to dispose of its identified assets, including a cement plant at Rewa in Madhya Pradesh.

A bench headed by Chief Justice Dipak Misra was informed by senior advocate Fali S Nariman that JAL has already deposited Rs 750 crore with the apex court registry and, for paying the principal amount to the home buyers, it would pay Rs 600 crore more in seven installments. The senior lawyer told the bench, which also comprised Justices A M Khanwilkar and D Y Chandrachud, that a prior approval should be granted to JAL "to dispose of identified cement assets including its cement plant at Rewa, Madhya Pradesh.

"To enable JAL to do this, the National Company Law Tribunal (NCLT), Allahabad may kindly be directed by this court to proceed forthwith to decide and pass appropriate orders on its (JAL) plea for sanctioning the Scheme of Arrangement, propounded pursuant to Master Restructuring Agreement signed and accepted by all 32 creditors of JAL. "The Scheme of Arrangement is already filed with the NCLT, Allahabad and the NCLT in its Order dated January 25, 2018 has sought for appropriate directions from this Court."

At the outset, Nariman elaborated the background of JAL and its subsidiary Jaypee Infratech (JIL) which has been facing proceedings in the NCLT and in the apex court due to the litigations initiated by banks, financial institutions (FIs) and the home buyers.