Notice Issued
SC notice to Jaypee Infratech panel on Yamuna body's plea in IBC case
This story was originally published at 19:02 IST on 23 August 2024
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NEW DELHI – The Supreme Court today issued notice to the monitoring committee of Jaypee Infratech Ltd on a petition by the Yamuna Expressway Industrial Development Authority challenging the National Company Law Appellate Tribunal's approval of Suraksha Realty Ltd's resolution plan for Jaypee Infratech.
A bench headed by Justice Sanjiv Khanna asked the industrial development authority to file an affidavit in view of its statements, recorded by the appellate tribunal, that it continues to favour rehabilitation of the Yamuna Expressway project and only aims to recover the money due to it.
The authority will have to indicate monetary and other concessions to flat buyers, the court said. It also asked the authority to list the steps taken by it during the period of the concession agreement with erstwhile promoter Jaiprakash Associates Ltd to protect the interests of flat buyers.
Justice Khanna remarked that the authority appeared to be unconcerned about flat buyers, and if that were indeed so, the court would have to step in. The authority will have to place on record a scheme, policy, or regulation passed by it to protect the interests of flat buyers, the court added.
In 2003, a concession agreement was executed between the Yamuna Expressway Industrial Development Authority and Jaiprakash Associates to build a six-lane 160 km "super expressway" connecting NOIDA and Agra, called the Yamuna Expressway, with service roads and allied facilities. The concession agreement was assigned to Jaiprakash Infratech in 2007.
Under the agreement, Jaiprakash Infratech had to bear all the costs of acquiring and developing the land leased to it. In return, it was granted the right to collect toll on the expressway for 36 years and to commercially exploit the land for development. The lands that were leased to the Jaiprakash group had been acquired from several landowning farmers.
In 2017, the Allahabad bench of the National Company Law Tribunal admitted a petition by IDBI Bank to start insolvency proceedings against Jaiprakash Infratech. After much litigation, the matter came to the appellate tribunal, which approved the resolution plan in May.
The appellate tribunal held that the Yamuna authority's consent was not required for approval of Suraksha's resolution plan. It also said that giving the authority 1 mln rupees towards its claims of external development charges of 5.26 bln rupees was valid and legal.
The appellate tribunal asked Suraksha to pay only 13.34 bln rupees in five instalments towards the Yamuna authority's claim of additional compensation payable to farmers amounting to 16.89 bln rupees. Aggrieved by this order of the appellate tribunal, the authority moved the apex court. End
Reported by Surya Tripathi
Edited by Rajeev Pai
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