J. Sagar Associates represented Yamuna Expressway Industrial Development Authority(“YEIDA”) in the appeals. The NCLT had approved the solution plan submitted by NBCC India Limited, albeit with certain modifications based on the objections raised on behalf of YEIDA (amongst others).
The Court has upheld the objections raised by YEIDA, but found that the NCLT is not empowered to modify a resolution plan – it can only send the plan back to the committee of creditors (“COC”) for reconsideration. The Supreme Court has exercised its powers under Article 142 of the Constitution of India, extending the time for completion of the CIRP of JIL, and has directed that fresh/modified plans may be submitted to the COC after taking into consideration the findings of the Court.
The Supreme Court has passed a significant judgment in the realm of insolvency laws while dealing with a batch of appeals relating to the insolvency resolution process of Jaypee Infratech Limited (JIL). Amongst 13 key findings, the Supreme Court has (i) affirmed that the NCLT cannot modify a resolution plan; and (ii) found that, unless it agrees otherwise, a dissenting financial creditor must be paid in cash.
JSA Team comprised Lead Partner – Amar Gupta, Partner – Divyam Agarwal, and Senior Associate – Ashish Joshi.