Legal Stumbles Continue
The two main legal challenges against Suraksha ARC’s plan are from ICICI Bank Ltd. and Yamuna Expressway Industrial Development Authority.
ICICI Bank, a dissenting creditor against the resolution plan, has sought that it be repaid its dues in cash, as opposed to land parcels it was slotted to receive against its claims of Rs 304 crore.
The YEIDA has claimed Rs 6,112 crore worth dues to be paid to farmers in exchange for land that was acquired for the development of the Yamuna Expressway and adjoining infrastructure. The resolution professional, however, had only admitted Rs 461 crore worth of claims. The state government entity has challenged this and is seeking full repayment of these dues. Suraksha ARC, in its plan has accorded no payments to operational creditors, including the YEIDA.
On its part, Suraksha ARC has been arguing that repayment of YEIDA’s dues would make the resolution plan unsustainable. Moreover, since statutory dues are ranked lower than financial creditors, the bid is not required to provide for them, a person with direct knowledge of the matter said.
As such, these challenges are still only being heard at the NCLT right now. Once a decision is arrived at, it is likely that a challenge will be made either at National Company Law Appellate Tribunal or the Supreme Court. In which case, there will be further delays in closing the issues.
Suraksha ARC and the creditors of Jaypee Infratech are expecting to see the legal issues end only by December, which will prolong the construction work, the person quoted above said.
Calls and messages to Aalok Dave, CEO of Suraksha ARC, were not answered. Jaypee Infratech’s resolution professional Anuj Jain declined to comment.