The creditors' panel of Jaypee Infratech Ltd (JIL) will hold a meeting in the morning on May 24 to discuss submissions made by state-owned NBCC about its resolution plan, just before the start of the scheduled voting process on Suraksha group's offer.
On May 20, the Committee of Creditors (CoC) approved Suraksha group's bid and rejected the offer made by NBCC, which on May 22, shot off a strongly-worded letter to JIL's Interim Resolution Professional (IRP) questioning his jurisdiction.
According to sources, the CoC meeting has been scheduled from 10 am till noon. The voting on the Suraksha group's bid is to commence from noon on May 24 and close at 5 pm on May 27.
At its last meeting on May 20, the CoC decided to start the voting process on Suraksha group's bid and rejected NBCC's resolution plan citing non-compliance with the Insolvency and Bankruptcy Code (IBC).
On May 22, NBCC wrote to IRP Anuj Jain questioning his jurisdiction and also sent a 14-page addendum to further clarify queries raised by the lenders.
Following NBCC's letter, Jain on Sunday decided to call a meeting of the CoC on May 24, the sources said. Five lenders -- SBI, IIFCL, IDBI, UBI and LIC -- requested the IRP to convene the meeting, they added.
The sources said ratification of NBCC's addendum dated May 22 to their resolution plan, discussion on the addendum to resolution plan and next steps in the CIRP (Corporate Insolvency Resolution Process) are part of the agenda for the CoC meeting.
In a regulatory filing on May 21, the IRP informed that the CoC in its meeting held on May 20 decided to put to vote the final resolution plan of Suraksha group.
Sources had said that some banks were in favour of holding another meeting of the CoC while a section of homebuyers wrote to the IRP stating that NBCC's addendum should not be considered if it was still non-compliant with the IBC and the Supreme Court's judgement in March this year.
In the letter written on May 22, NBCC questioned the jurisdiction of the IRP in submitting that the offer was non-compliant with the IBC and demanded that the plan should be put to vote.
Asserting that the offer is compliant, NBCC hade also said the company is fully aware of its responsibilities to be compliant with applicable law in its deeds and actions.
Earlier, sources had said that NBCC's offer was declared as non-compliant. The decision was based on the IRP's report, which stated that the offer was non-compliant with certain provisions of the IBC and an order of the Supreme Court, they had said.
As per the IRP's report, NBCC's proposals to offer NCDs (non-convertible debentures) to dissenting financial creditors for payment of liquidation value and also include 'Guarantee Security Interest' as well as 'Promoter Security Interest' are non-compliant with the provisions of the IBC.
This is the fourth round of the bidding process in the matter of JIL bankruptcy case.
In March this year, the Supreme Court ordered that bids be called only from NBCC and Suraksha group.
The apex court had also directed that resolution process be completed in 45 days, which lapsed on May 8 and an application has been filed to extend the timeline for finding a buyer for JIL.
JIL went into the insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium.
In the first round of insolvency proceeding, the Rs 7,350-crore bid of Lakshadweep, part of Suraksha Group, was rejected by lenders. The CoC had rejected the bids of Suraksha Realty and NBCC in the second round held in May-June 2019.
The matter reached the National Company Law Appellate Tribunal (NCLAT) and then the apex court.
In November 2019, the Supreme Court directed the completion of JIL insolvency process within 90 days and ordered that the revised bids to be invited only from NBCC and Suraksha.
In December 2019, the CoC, comprising 13 banks and around 21,000 homebuyers, approved the resolution plan of NBCC with a 97.36 per cent vote in favour during the third round of the bidding process.
Later in March 2020, NBCC had got an approval from the NCLT to acquire JIL. Homebuyers' claim amounting to Rs 13,364 crore and lenders' claims worth Rs 9,783 crore were admitted last year.
However, the order was challenged before the National Company Law Appellate Tribunal (NCLAT) and later in the Supreme Court, which in March this year said that fresh bids should be invited only from NBCC and Suraksha.
(With input from agencies)