NCLAT i.e the National Company Law Appellate Tribunal recently said that the financial lenders particularly the banks can vote against the NBCC’s proposal for the acquisition of the debt-ridden Jaypee Infratech and also order the completion of the voting process that is underway currently.
IDBI-led consortium approached the NCLAT to seek the permission for voting against the bid proposed by the National Building Construction Company. The voting process commenced on 31st March and is closing today as 13 banks and 23,000 homebuyers are using their voting rights.
Justice SJ Mukhopadhaya heading a three-member bench ordered the Resolution Professional of Jaypee Infratech to submit the voting results. The appellate tribunal also clearly stated that votes of the absentees will not be counted in the total voting percentage.
The Appellate Tribunal said that as the voting is going on, we are not inclined to pass any orders. We make it clear that if any financial creditor remains absent from voting, their voting percentage would not be counted. The tribunal further said that the financial institutions/lenders can vote against the NBCC proposal.
The NCLAT also said that we have not said don’t vote against NBCC. We have said CoC (Committee of Creditors) may not file final report, if it is rejected. The Appellate Tribunal gave this statement while hearing a batch of applications filed by the banks that sought permission to vote against NBCC approval.
In 2017, the National Company Law Tribunal (NCLT) had admitted the application by an IDBI Bank-led consortium, seeking resolution for JIL under the Insolvency and Bankruptcy Code. The tribunal had appointed Anuj Jain as IRP to manage the company’s business, who later invited bids from investors interested in acquiring JIL and completing the stuck real estate projects in Noida and Greater Noida.