Jaypee Infratech Insolvency: NCLAT Reserves Order On Yamuna Expressway Appeal
NCLT had earlier rejected the claims made by Yamuna Expressway while approving the resolution plan submitted by Suraksha Group.
The National Company Law Appellate Tribunal on Friday reserved its order in an appeal filed by the Yamuna Expressway Industrial Development Authority in the insolvency case of Jaypee Infratech.
The authority had approached the appellate tribunal against the NCLT order approving the resolution plan by Suraksha Group for Jaypee Infratech. YEIDA sought a stay on NCLT's order to the extent of rejection of its claims and not on the resolution process.
The National Company Law Tribunal had earlier rejected the claims made by YEIDA, which pertain to additional compensation sought for the farmers as the land in question was acquired from them. Besides a claim of Rs 6,111 crore on account of pending work and unexecuted development works, YEIDA had sought Rs 1,689 crore as additional compensation payable to farmers.
The winning bidder, Suraksha Group, had considered these claims as an operational debt and dealt with them according to the provisions of the insolvency code. The NCLT did not find any legal infirmity with the way Suraksha had dealt with the claims.
In its appeal before the NCLAT, YEIDA said that it's not an operational creditor. The obligation to pay the farmers is on the allottee, in this case Jaypee Infratech, and not on YEIDA.
Arguing for the authority, Additional Solicitor General N Venkataraman said that almost 6,000 acres of land was allotted to Jaypee. The additional compensation along with extra development cost amounts to over Rs 3,000 crore. And that, the NCLT-approved resolution plan has made no provision for it.
