The Supreme Court on Thursday said that the promoters of Jaiprakash Associates cannot bid for Jaypee Infratech, which is facing insolvency proceedings before the National Company Law Tribunal (NCLT).
Rejecting Jaypee Associates plea to bid, a bench of Chief Justice Dipak Misra, Justice A.M. Khanwilkar and Justice D.Y. Chandrachud allowed the NCLT to proceed.
Taking recourse to Article 142 of the Constitution that confers plenary powers to the top court to tide over any situation, the court said that the mandatory period of 180 days to complete the insolvency proceedings by the Interim Resolution Professional would commence from August 9.
The court also directed the constitution of a new Committee of Creditors (CoC) that would include the representatives of the home buyers who are now been recognised as operational creditors under the amended Insolvency and Bankruptcy Code (IBC).
While directing the transfer of Rs 750 crore that were deposited by the Jaiprakash Associates to the NCLT, the court allowed the application of Reserve Bank of India (RBI) to ask the banks to initiate insolvency proceedings against Jaiprakash Associates.