NCLAT suggests terms for fresh bidding in Jaypee Infra case, shields buyers

The National Company Law Appellate Tribunal (NCLAT) on Wednesday directed IDBI Bank, the lead lender of debt-ridden Jaypee Infratech, to file an affidavit listing out new terms and conditions if a fresh round of bidding is conducted. A two-member bench headed by chairman justice SJ Mukhopadhaya has asked IDBI Bank to file an affidavit by Friday in this regard. The appellate tribunal has listed the matter for next hearing on Monday. “The counsel appearing for lenders is allowed to file new terms and conditions in case fresh bidding takes place,” the bench said.

In the second round of bidding, the committee of creditors had first rejected the resolution plan of Suraksha Realty and then voted against state-owned NBCC’s offer. The appellate tribunal also suggested some guidelines for new terms and conditions.

“All allottees would be given flats according to their builder buyer agreement. If allottee not present then the CoC has to decide how it has to be adjusted,” the bench said. “Land attached to the building and with common area amenities would remain with the allottees,” it added.