Jaypee Infratech Ltd. Vs Jaypee Healthcare Ltd. & Ors. (NCLAT Delhi)
In a decision addressing the corporate insolvency of Jaypee Healthcare Ltd., the National Company Law Appellate Tribunal (NCLAT) Delhi disposed of appeals filed by Jaypee Infratech Ltd. challenging the initiation of the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT), Allahabad Bench, on June 14, 2024. The NCLAT’s review, following a September 9, 2024, proposal approved by the Committee of Creditors (CoC), included an affidavit from the Resolution Professional (RP) confirming that the settlement terms had been met, with the required payment deposited by a strategic partner and disbursed to the financial creditors. This settlement effectively closed the CIRP, as financial creditors acknowledged receipt of the full settlement amount of INR 1,035.29 crore, in line with the Lakshdeep Proposal approved in the CoC’s fourth meeting on October 4, 2024. The tribunal subsequently set aside the June 14 CIRP order, concluding that no outstanding claims necessitated continuing the insolvency process. The tribunal also confirmed payment of fees and expenses for the IRP as previously resolved by the CoC. With all obligations under the settlement met, the NCLAT ordered the closure of the CIRP, ending the ongoing insolvency proceedings and allowing involved parties to take necessary legal actions moving forward. This judgment consolidates the CoC’s commitment to fulfilling financial liabilities and upholds the efficient resolution of creditor claims without further court intervention.
