In a landmark decision, the Supreme Court of India clarifies various facets of the Insolvency and Bankruptcy Code, 2016 while extending the corporate insolvency resolution process of Jaypee Infratech Limited.

Background

On 24 March 2021, a three-judge bench of the Supreme Court of India in the matter of Jaypee Kensington Boulevard Apartments v NBCC India Ltd & Ors did not approve the resolution plan submitted by NBCC India Limited (NBCC) for Jaypee Infratech Limited (JIL) and remanded the matter back to the Committee of Creditors (CoC) of JIL, to complete its corporate insolvency resolution process (CIRP) (Judgement) within 45 days, by inviting fresh/modified resolution plans from the resolution applicants who had previously participated in JIL's CIRP.

The Judgement discusses various important provisions of the Insolvency and Bankruptcy Code, 2016 (Code), including the jurisdiction of adjudicating authorities to modify a resolution plan, payments to dissenting financial creditors and also sets out guiding principles to a legally compliant resolution plan.

Brief Facts

(a) In 2003, Jaiprakash Associates Limited (JAL) was awarded the bid for development of the 'Taj Expressway Project' under a concession agreement (Concession Agreement) executed between Yamuna Expressway Industrial Development (YEIDA) and JAL.

To view the full article click here

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.