NCLAT Admits Banks’ Petition On Jaypee Land

The National Company Law Appellate Tribunal today admitted a petition filed by banks against the National Company Law Tribunal order that directed Jaiprakash Associates Ltd. to return nearly 760 acres of land to its subsidiary Jaypee Infratech Ltd.

A two-member bench headed by Chairman Justice S J Mukhopadhaya also issued notices to the resolution professional of the company over the petition filed by three lenders -- Axis Bank Ltd., Standard Chartered Bank and ICICI Bank Ltd.

The bench fixed July 13 as the next date of hearing.

During the proceedings, the appellate tribunal observed that the adjudicating authority does not have jurisdiction to declare any instrument illegal.

NCLAT was hearing the appeal over the order of the Allahabad bench of the National Company Law Tribunal, which had asked debt-ridden Jaiprakash Associates to return nearly 760 acres of land to its subsidiary Jaypee Infratech, declaring the transfer of the land as “fraudulent” and “undervalued”.

NCLT had directed JP Group's flagship firm Jaiprakash Associates to release and discharge interest created over the land to lenders, including ICICI Bank.

The order had come on a petition filed by Jaypee Infratech's resolution professional Anuj Jain in the NCLT seeking direction over transactions entered into by the company's promoters creating mortgage on 858 acres of land to secure debt for Jaiprakash Associates.

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