NCLAT refuses to stay NBCC's resolution plan for Jaypee Infratech, Asks Interim Monitoring Committee to be formed

New Delhi: While refusing to stay the execiuton of the resolution plan by NBCC for the Jaypee Infratech, the The National Company Law Appellate Tribunal (NCLAT) has directed that the interim resolution professional (IRP) to constitute an ‘Interim Monitoring Committee’ having representatives of the state-run company and its 3 main lenders – LIC, IIFCL and IDBI Bank.

"Till further orders, the approved resolution plan may be implemented subject to outcome of this appeal…The IRP may constitute an ‘Interim Monitoring Committee’ comprising the successful resolution applicant, i.e., the appellant and the three major institutional financial creditors, who were Members of the 'committee of creditors," the NCLAT ruled.

The hearing came up as the state-run company had moved an urgent petition against the orders of the National Company Law Tribunal (NCLT). The next date of hearing at NCLAT has been decided to be 15 May 2020.

THE NCLAT also sent notices to IDBI Bank, ICICI Bank and others asking them to file reply within 2 weeks. 

In December 2019, NBCC has submitted a resolution plan for embattled Jaypee Infratech. On 3 March 2020, NCLT had approved the bid of the state-run company to acquire Jaypee Infratech through insolvency process.