RP must ensure JIL voting proces as per IBC, SC order: IBBI

RP must ensure JIL voting proces as per IBC, SC order: IBBI

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Noida: Home buyers of the debt-ridden Jaypee Infratech stage a demonstration against the company, outside the venue where the company
New Delhi, Dec 6 (IANS) Amid concerns raised by several home buyers regarding the voting process for the acquisition of the bankrupt Jaypee Infratech, the Insolvency and Bankruptcy Board of India (IBBI) on Friday said that the resolution professional (RP) is duty bound to conduct the voting process in compliance with the Insolvency and Bankruptcy Code (IBC) and the Supreme Court's judgement in the matter.
In a clarification, the IBBI also said that the resolution professional should also suitably inform the home buyers about the timing and manner of the voting to remove any confusion.
"It is hereby clarified that the Resolution Professional/Authorised Representative is duty bound to conduct the process, including voting, strictly in compliance with the Code, Regulations and the order dated 6th November, 2019 of the Supreme Court in the matter of Jaiprakash Associates Ltd. & Anr. Vs. IDBI Bank Ltd. & Anr. and to suitably inform the creditors in such class about the timing and the manner of voting by them on the resolutions/resolution plan to obviate any confusion," it said.
In the case of Jaypee Infratech, the interim resolution professional is Anuj Jain.
The board said that it has received several mails from "some financial creditors in a class, namely, homebuyers" expressing confusion about the manner of voting in the context of the resolution plan in the corporate insolvency resolution process of Jaypee Infratech.
The home buyers were to have an internal voting process starting on Wednesday, over which company among the applicants should acquire the insolvent company and its projects. The voting, however, was stopped on Thursday, due to objectons raised by certain home buyers and to avoid any confusion.
Most of the home buyers are in support of state-run NBCC (India) and want it to be put first to vote, ahead of the other bidder, Suraksha Realty.
Regarding the internal voting process, the IBBI said that the pre-polling ahead of the actual vote by the Committee of Creditors (CoC) does not seem to be in consonance with the IBC.
"It appears that there is 'internal voting'/'pre-polling' on certain matters which are not in the agenda before the Committee of Creditors. This prima facie does not appear to be in consonance with the Insolvency and Bankruptcy Code, 2016 read with the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (Regulations) and has the potential to vitiate the voting process," it said.
Jaypee Infratech's CoC sought the bids after the Supreme Court had, on November 6, ordered completion of the JIL insolvency resolution process (IRP) within 90 days and said only the resolution plans of the NBCC and Suraksha would be considered by the CoC for completing pending projects.

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