Case Law Details
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.
FULL TEXT OF THE NCLAT JUDGMENT/ORDER
Comp. App. (AT) (Ins.) No. 1301 & 1296 of 2024 have been filed against an Order dated 14.06.2024 passed by the Learned Adjudicating Authority (National Company Law Tribunal, Allahabad Bench, Prayagraj), initiating Corporate Insolvency Resolution Process (`CIRP’) against the Jaypee Healthcare Limited.
2. App. (AT) (Ins.) No. 1186 of 2024 has been filed against the Order dated 18.04.2024 passed by the Learned Adjudicating Authority (National Company Law Tribunal, Allahabad Bench, Prayagraj) rejecting the Impleadment Application.
3. In these Appeals, we have passed following Order on 12.09.2024:
“1. An Affidavit has been e-filed by the Resolution Professional (`RP’) on yesterday, hard copy of which has been produced before the Court for consideration.
2. It is submitted by the RP that in terms of the earlier Order passed by this Tribunal, the proposal has been placed before the Committee of Creditors (`CoC’) and the CoC in its Meeting held on 09.09.2024 has approved the proposal that Settlement on the terms recorded in the Minutes of the Meetings. Copy of the Minutes have been filed along with the Affidavit.
3. Counsel for the RP submits that as per the approved Resolution, the payment has to be made within 30 days and the final Order may be passed after 30 days.
4. The terms and conditions have been already recorded in the Minutes of the CoC Meeting.
5. Counsel for the Appellant submits that only direction needs to be issued is that all concern shall render all assistance so the terms may be implemented as agreed by the Parties.
6. In view of the aforesaid, we are of the view that since period for payment is 30 days only, all Stakeholders including the IRP, CoC, Corporate Debtor and holding Company shall render all assistance to complete the process as per the terms and conditions.
List this Appeal on 17th October, 2024.
Interim Order to continue.”
4. Counsel for the IRP has filed an Affidavit dated 04.10.2024, wherein it has been pleaded that in the fourth CoC Meeting held on 04.10.2024 it has been noted that entire amount equivalent to the admitted Financial Creditor’s claim has been deposited to the designated Bank which is subsequently disbursed.
5. Counsel for the Financial Creditor appears and submits that they have received the amount and no claim survives for CIRP to continue. In Paragraph 28 of the Affidavit of the IRP following has been pleaded:
“28. Thereafter, the IRP convened the Fourth CoC meeting on October 4, 2024 wherein the IRP informed the CoC that ahead of the said CoC meeting, the Comp. App. (AT) (Ins.) No. 1301, 1186 & 1296 of 2024 Strategic Partner had deposited an amount equivalent to the admitted financial creditor claim (i.e., INR 1035,29,86,580.94) (“Settlement Amount”) in the designated bank account of the Corporate Debtor, which had subsequently been distributed to the financial creditors of the Corporate Debtor in terms of the Lakshdeep Proposal. The CoC members acknowledged receipt of the Settlement Amount on non-recourse basis and took note of the implementation of the Lakshdeep Proposal. A copy of the minutes of the Fourth CoC meeting held on October 4, 2024 is annexed herewith and marked as Annexure – R-13.”
6. In view of the fact that the entire claim has now been satisfied and the amount deposited has been disbursed, we see no reason to continue the CIRP any further.
7. Counsel for the IRP submits that in the third CoC Meeting it has been already resolved that the IRP shall be paid fee and expenses as per the Code.
In view of the aforesaid, we set aside the Order dated 14.06.2024, impugned in Comp. App. (AT) (Ins.) Nos. 1301 & 1296 of 2024. Both the Appeals are disposed of accordingly and CIRP stands closed.
In view of setting aside the Order dated 14.06.2024, no Orders are required in Comp. App. (AT) (Ins.) No. 1186 of 2024.
CIRP having been set aside, it shall be open for all concern to take all necessary steps in accordance with law.
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