In a recent development, the appellate tribunal NCLAT has admitted YEIDA's plea challenging the NCLT's order approving Suraksha Group's bid to acquire debt-ridden Jaypee Infratech. Although the appellate tribunal recognised ‘substantial merit’ in YEIDA’s appeal for higher compensation, it declined to issue a stay on the NCLT's order. As per the NCLT order dated March 7, 2023, YEIDA was allotted an additional farmer's compensation of Rs. 10 lakhs, which has been challenged by YEIDA. YEIDA's claims amount to Rs. 6,111.59 crores, including a 64.7 percent additional compensation payable to farmers.
Earlier this month the appellate tribunal NCLAT admitted the plea of YEIDA (Yamuna Expressway Industrial Development Authority) challenging the NCLT’s order to approve Suraksha Group’s bid to acquire debt-ridden Jaypee Infratech. However, the NCLAT appellate tribunal declined to issue a stay on the order passed by the NCLT on March 07.
The two-member bench, headed by Chairman Justice Ashok Bhushan, recognised ‘substantial merit’ in YEIDA’s appeal for higher compensation and called for early decision on the matter. It also issued notices to Suraksha Group and the monitoring planed that was engaged to implement the resolution plan as per YEIDA’s petition.
As per the NCLT order dated March 7, 2023, YEID was allotted an additional farmers compensation of Rs 10 lakhs. The appellate tribunal found substantial grounds to entertain an appeal to the judgement. However it clarified that this decision will not amount to a stay over the implementation of Suraksha Group’s resolution plan. It also directed that the NCLT order would not be used to determine the rights and liabilities of the appellant and the corporate debtor in the pending proceedings in arbitration that is currently pending before the commercial court.
YEIDA would be challenging the order of the NCLAT approving plan of Suraksha such that the plan did not make adjudicate provisions for YEIDA’s claims .They would appeal within the stipulated period which is 30 days before NCLAT. A compensation of Rs.10 lakhs was claimed by YEIDA towards the farmers from whom the lands had been acquired. An early decision was to be made on this appeal.
YEIDA had entered into a Concession Agreement with Jaypee in February 2023 by filing claims on account of pending works, External Development Charges and other future works. The total claims amounted to Rs.6,111.59 crores. A 64.7 percent additional compensation was sought to be payable to the farmers whose lands had been acquired. An approximate claim of Rs. 1,689 crore was raised as a claim towards additional compensation payable to farmers. However, the claim towards additional compensation was rejected by the NCLAT.
The (CIRP) Corporate Insolvency Resolution Process against JIL was started in August 2017. In 2021, after four rounds of bidding, Suraksha Group won the bid with 98.66 percent votes. Over ten banks and more than 20,000 homebuyers are said to have participated in the voting process.
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