Adjudicating Authority has limited jurisdiction in the matter of approval of a resolution plan under IBC, says SC

The Supreme Court has clarified that the Adjudicating Authority's powers are limited when approving a resolution plan under the Insolvency and Bankruptcy Code (IBC). This ruling pertains to the corporate insolvency resolution process (CIRP) of Jaypee Infratech Limited, where a resolution plan by NBCC (India) Limited was approved by creditors but faced objections from various stakeholders. The court's decision addresses the scope of the Adjudicating Authority's role amidst these disputes.

IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 3395 OF 2020

JAYPEE KENSINGTON BOULEVARD APARTMENTS
WELFARE ASSOCIATION & ORS. ……. APPELLANT(S)

 VERSUS

NBCC (INDIA) LTD. & ORS. ……. RESPONDENT(S)

WITH

CIVIL APPEAL No.3396 of 2020, T.C (C) Nos. 234, 235, 236, 237, 238, 239, 240, 241, 242, 243 of 2020, Civil Appeal No. 1056 of 2021 @ SLP(C) No. 5144 of 2021@ Diary No. 18129 of 2020, Civil Appeal No. 1057 of 2021 @ SLP(C) No. 10543 of 2020 and Diary No. 20274 of 2020

JUDGMENT

Dinesh Maheshwari, J.

Introductory

Permission to file special leave petition(s) and leave granted in respective Petition(s) for Special Leave to Appeal.

2. This batch of civil appeals, special appeals and transfer cases essentially relate to the resolution plan in the corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016 concerning the corporate debtor, Jaypee Infratech Limited , whose activities do impact a large number of persons/entities, including the buyers of flats/apartments in its real estate development projects.

2.1. As shall be noticed hereafter, CIRP in relation to the corporate debtor JIL has been entangled in various disputes in the past and even when the resolution plan submitted by the resolution applicant, NBCC (India) Limited  has been approved by the Committee of Creditors  by a substantial majority of 97.36% of voting share of the financial creditors, several disputes/objections have come up from various stakeholders and role players, voicing the concerns of their own, like dissenting financial creditors, dissatisfied homebuyers, displeased land providing agency, disillusioned creditor of a wholly-owned subsidiary of the corporate debtor and disappointed minority shareholders. Apart from all these, the holding company of the corporate debtor, namely, Jaiprakash Associates Limited and its stakeholders have several questions over the resolution process in question and are particularly concerned with the sum of INR 750 crores, which was deposited by JAL pursuant to the orders passed by this Court in the first round of litigation.

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