The National Company Law Appellate Tribunal on Tuesday extended the resolution period of Jaypee Infratech for another 90 days, which includes a 45-day window for the resolution professional and lenders of the debt-ridden firm to invite fresh bids.
The Committee of Creditors and the resolution professional would have 45 days to consider the resolution plans and select a final bidder to complete the process.
A two-member bench headed by Chairman Justice S J Mukhopadhaya said that as Corporate Insolvency Resolution was pending for a long time, it would give only 45 days to Resolution Professional (RP) and the Committee of Creditors (CoC) of the Jaypee Infratech to complete the process of inviting new bids.
It also granted another 45 days to the RP and the CoC to finish the entire process of selecting a final bidder.
"In view of aforesaid extraordinary situation, we are of the view that the period from 17th September 2018 i.e the date of application filed by the Association of the allottees for clarification for the order and till the final decision i.e. 4th June 2019 can be excluded for the purpose of counting the 270 days," the NCLAT said.
However it also said that as the matter is pending since long, it was "not inclined to exclude the total period of 260 days and instead in the interest of the Allottees, we exclude 90 days for the purpose of counting the period of 270 days of Corporate Insolvency Resolution Process', which should be counted from the date of receipt of the copy of this order."
The appellate tribunal further added: "Rest of the period of 45 days margin is given to remove any difficulty and appropriate order as may be passed by the Adjudicating Authority (NCLT)."