JAIPRAKASH ASSOCIATES LTD. & ANR. versus IDBI BANK LTD. & ANR.

JAIPRAKASH ASSOCIATES LTD. & ANR. versus IDBI BANK LTD. & ANR.

In view of extraordinary and unique facts, legislative changes and delays due to absence of clarity in law, Supreme Court exercises its plenary powers under Article 142 to direct IRP to complete CIRP of Jaypee Infratech Ltd. within 90 days from date of this order, allowing fresh/supplemented resolution plans to be sought only from Suraksha Realty and NBCC; pendency of other applications will not impede process; these directions are exceptional and not a precedent.

Parties
Appellant: Jaiprakash Associates Ltd.; Respondent: IDBI Bank Ltd.; Appellant: Wish Town Home Buyers Welfare Society
Jurisdiction
India
Judgment Date
06 November 2019
Procedural Posture
Civil Appeal / Supreme Court Final Order Disposing of Appeal Against NCLAT Judgment
Outcome
Appeals disposed of with directions; CIRP to be completed within 90 days by IRP; limited fresh resolution plans allowed.
Legal Topics
Corporate Insolvency Resolution Process, Section 7 IBC, Timeline Exclusion in CIRP, Committee of Creditors, Interpretation of Section 12 IBC, Power Under Article 142
Insolvency Banking Corporate Insolvency Resolution Process Section 7 IBC Timeline Exclusion in CIRP Committee of Creditors Interpretation of Section 12 IBC Power Under Article 142

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Parties

Jaiprakash Associates Ltd.

Appellant

IDBI Bank Ltd.

Respondent

Wish Town Home Buyers Welfare Society

Appellant

Procedural Posture

Civil Appeal / Supreme Court Final Order Disposing of Appeal Against NCLAT Judgment

Legal Issues

  1. 1 Whether NCLAT had power to exclude 90 days from statutory CIRP period for Jaypee Infratech Ltd.
  2. 2 Whether, after expiry of CIRP statutory period, NCLAT or Supreme Court can permit fresh resolution plans under IBC timelines

Ratio Decidendi

In view of extraordinary and unique facts, legislative changes and delays due to absence of clarity in law, Supreme Court exercises its plenary powers under Article 142 to direct IRP to complete CIRP of Jaypee Infratech Ltd. within 90 days from date of this order, allowing fresh/supplemented resolution plans to be sought only from Suraksha Realty and NBCC; pendency of other applications will not impede process; these directions are exceptional and not a precedent.

Court Disposition

Appeals disposed of with directions; CIRP to be completed within 90 days by IRP; limited fresh resolution plans allowed.

Orders

  • IRP to complete CIRP within 90 days from date of order.
  • In first 45 days, IRP to invite and process revised resolution plans only from Suraksha Realty and NBCC.