The National Company Law Appellate Tribunal (NCLAT) on April 22, 2020 refused to stay the execution of the resolution plan submitted by NBCC to take over embattled firm Jaypee Infratech and complete 20,000 stuck housing units. It also allowed the IRP to proceed with constituting the interim monitoring committee for execution of the plan. IRP Anuj Jain has been directed to constitute an interim monitoring committee, which comprises representatives of the NBCC and its three main lenders, i.e., IDBI Bank, IIFCL and LIC.
According to the sources, no construction can begin immediately due to the COVID-19 situation, there will now at least be an interim arrangement in place to start the ball rolling. The order passed by the Honourable NCLAT said that the implementation of the ‘Successful Resolution Plan’ would involve participation of the ‘Successful Resolution Applicant’, i.e., NBCC (India) Ltd. as also the three major Institutional Financial Creditors, who are Members of the ‘Committee of Creditors’ i.e., IDBI Bank Ltd., IIFCL and LIC.
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