In order to make NBCC’s bid to acquire Jaypee Infratech beneficial for home buyers, the NCLAT directed representatives of banks, allottees and other stakeholders to appear before it on July 17.
34.75 per cent of the total of Committee of Creditors (CoC) had voted in favour of NBCC’s bid, 1.44 per cent against, whereas 23.8 per cent did not vote. However, all13 banks constituting 40.75 per cent of CoC voted against the bid.
A three-member bench headed by Justice Chairman S J Mukhopadhyaya stressed that the appellate tribunal’s priority is to take care of the interest of the home buyers and asked the stakeholders involved to appear before it to find a solution that would make NBCC’s plan beneficial for home buyers. The bench also asked banks to nominate a high ranking member to negotiate and to submit the gist of the resolution plan with objections submitted by NBCC.
NBCC has proposed infusion of Rs. 200 crore equity capital, transfer of 950 acres of land worth Rs 5,000 crore to banks and completing construction of flats by July 2023 to settle an outstanding claim of Rs 23,723 crore of financial creditors. The bench also disregarded Adani’s offer of faster construction to home buyers and stated that the company must intervene before the appellate tribunal if it was an interested party.
Justice Mukhopadhyaya reiterated that resolution of Jaypee Infratech will not be allowed to fail in order to protect the interest of the home buyers and only when no solution will be attained through the NBCC bid, will the bench consider Adani or any other bid. 23000 home buyers, representing nearly 60% of the voters have voting rights in the CoC of Jaypee Infratech and for approval of any resolution plan; 2/3rds or 66% votes must be in favour.
In contrast to bankruptcy proceedings where lenders have the right to vote for or against any resolution plan for a debt-laden firm, in realty firms home buyers have voting rights at par with the lenders.
Courtesy/By: Dipsi Soni
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07 Jul 2019
