Jaypee Kensington Boulevard Apartments Welfare Association & Ors. V. NBCC (India) Ltd. & Ors.: Supreme Court Judgment Dated 24 March 2021

The Supreme Court recently in its judgement dated 24 March 2021 has set aside an order of the National Company Law Tribunal, Principal Bench, New Delhi (“NCLT”) which had inter alia, approved the resolution plan submitted by NBCC (India) Limited (“NBCC”), after carrying out certain modifications to the resolution plan. The Supreme Court has remitted the process of approval of the resolution plan submitted by NBCC back to the Committee of Creditors (“CoC”) of Jaypee Infratech Limited (“JIL”) for further consideration and extended the period for completion of the corporate insolvency resolution process (“CIRP”) by another 45 days, with liberty to the Interim Resolution Professional (“IRP”) to invite modified/fresh resolution plans from NBCC and Suraksha Realty (“Suraksha”), to be submitted within 14 days from the date of the judgment.

Shardul Amarchand Mangaldas & Co. (“SAM Co.”) had the opportunity to represent ICICI Bank Limited in proceedings which raised substantial questions of law under the Insolvency and Bankruptcy Code, 2016 (“Code”). The judgment of the Supreme Court, as discussed below, settle the position of law on inter alia the rights of dissenting financial creditors, treatment of third party interests in a resolution plan, and the scope of a resolution plan. . They also strengthen jurisprudence on the role of the NCLT at the time of approving a resolution plan.

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