TMI Blog2018 (8) TMI 661X X X X Extracts X X X X X X X X Extracts X X X X ..... nded period of 270 days on 12 May 2018. Having regard to the material change which has been brought about by the amendment of the IBC by the Ordinance and the fact that this Court has been in seisin of the proceedings to ensure that the home buyers are protected, we are of the view that it is but appropriate and to do complete justice to secure the interests of all concerned that the CIRP should be revived and CoC reconstituted as per the amended provisions to include the home buyers. In the facts of the present case, recourse to the power under Article 142 would be warranted to render complete justice. Parliament has undoubtedly provided a period of 180 days and an extended period of 90 days to complete the process. But in the present case a peculiar situation has arisen as a result of which the status of the home buyers which had not been recognised prior to 6 June 2018 has now been expressly recognised as a result of the amending Ordinance. A new CoC should be constituted in accordance with the amended provisions of the IBC to enforce the statutory status of the allottees as financial creditors. We also clarify that apart from the three bidders whose bids were found t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Mr. Udit Naresh, Adv., Mr. M. A. Krishna Moorthy, AOR, Mr. K. K. Mohan, AOR, Mr. Raj Kishor Choudhary, AOR, Mr. Rajiv K. Virmani, Adv., Mr. Atul Malhotra, Adv., Mr. Gaurav Jain, Adv., Mr. Yadav Narender Singh, AOR, Mr. R. Sudhinder, Adv., Ms. Nimita Kaul, Adv., Mr. Ashok Mathur, AOR, Mr. Rabin Majumder, AOR, Ms. Shashi Kiran, AOR, Mr. Abhishek Baid, Adv., Mr. Praneet Das, Adv., Mr. Anup Jain, AOR, Mr. Yatish Mohan, Adv., Mr. Sumant Kumar Jha, Adv., Mr. Amar Shakti, Adv., Mr. Kedar Nath Tripathy, AOR, Mr. T. Harish Kumar, AOR, Mr. Talha Abdul Rahman, AOR, Mr. Abhijat P. Medh, AOR, Mr. Pradeep Kumar Bakshi, AOR, Mr. Mukesh Kumar Maroria, AOR, Mr. Ravindra Kumar, AOR, Ms. Sharmila Upadhyay, AOR, Ms. Madhusmita Bora, AOR, Mr. Ranjan Kumar Pandey, AOR, Mr. Sahil Mullick, Adv., Mr. Higesh Kumar Sharma, Adv., Mr. S.K. Rajora, Adv., Mr. Praveen Swarup, AOR, Mr. Shekhar Kumar, AOR, Ms. Supriya Juneja, AOR, Mr. Bharat Monga, Adv., Mr. V. Sudeer, Adv., Mr. M.B. Ramasubba Raju, Adv., Mr. M. Chandra Sekhar, Adv., Ms. Soumya Shree Kulkarni, Adv., Ms. Megha Khanna, Adv., Mr. Balaji Srinivasan, AOR, Mr. Rajeev Kumar Bansal, AOR, Mr. Abhishek Yadav, AOR, Mr. Amarjit Singh Bedi, AOR, Mr. Sidharth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v Kejriwal, AOR, Mr. Ejaj Maqbool, AOR, Mr. Deepak Goel, AOR, Mr. Christopher D souza, AOR, Mr. Braj Kishore Mishra, AOR, Mr. Binay Kumar Das, AOR, Ms. Asha Jain Madan, AOR, Mr. Anil Nag, AOR, Mr. Anil Kumar Tandale, AOR, Mr. Aneesh Mittal, AOR, Ms. Shreya Sharma, Adv., Mr. Amarjit Singh Bedi, AOR, Mr. Ajay Marwah, AOR, Mr. Anand, Adv., Mr. Abhijit Sengupta, AOR, Mr. Subashis Biswas, Adv., Mr. Abhay Kumar, AOR, Mr. Anivesh Bharadwaj, Adv., Mr. A. Lakshminarayanan, AOR, Mr. Vaibhav Kumar, AOR, Mr. Ujjal Banerjee, AOR, Ms. Udita Singh, AOR, Mr. Somesh Chandra Jha, AOR, Mr. Shashank Shekhar Singh, AOR, Mr. Sandeep Devashish Das, AOR, Mr. S.K. Bhattacharya, AOR, Mr. L.K. Paonam, Adv., Mrs. Tomthinnganbi Koijam, Adv., Mr. Niraj Bobby Paonam, Adv., Mr. Rahul Sharma, AOR, Mr. Mithilesh Kumar Singh, AOR, Mr. Krishna Kumar Singh, AOR, Mr. Jinendra Jain, AOR, Mr. Jay Bhati, AOR, Mr. Gagan Gupta, AOR, Mr. Bhargava V. Desai, AOR, Mr. Ajay Sharma, AOR, Mr. Rajesh P., AOR, Mr. P.N. Puri, AOR, Mr. Anivesh Bharadwaj, Adv., Mr. Chander Shekhar Ashri, AOR, Mr. Ayush Sharma, AOR, Mr. Sandeep Devashish Das, AOR, Mr. Sahil Sethi, Adv., Ms. Astha Sharma, AOR, Mr. Shivam Sharma, Adv., Mr. Sumant Batra, A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... financial or operational creditors are recognized, disregarding other stakeholders such as the home buyers; (ii) The order dated 9 August 2017 of the NCLT be set aside; (iii) The Union of India be directed to notify under Section 14(3) that the provisions for moratorium contained under Section 14(1)(a) shall not apply to consumers and that the home buyers be allowed to exercise the rights available to them under the Consumer Protection Act 1986 and the Real Estate (Regulation and Development) Act 2016; (iv) A forensic audit of JIL and JAL be conducted for the period from 2009 to 2017; and (v) A direction be issued to the Union of India to protect the interests of home buyers in the larger public interest. 5 As the above narration indicates, the grievance with which this Court was moved under Article 32 was that the CIRP ignores the interests of vital stakeholders in building projects, chief among whom are individuals who have invested their wealth in pursuit of the human desire to own a home. The IBC, in the submission of the petitioners, recognized only three categories or classes namely (i) corporate debtors; (ii) financial creditors and (iii) operational creditor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directed to remain stayed until further orders. The Court further directed that a copy of the proceedings be served on the office of the learned Attorney General for India. Applications for impleadment and intervention were allowed. 9 On 11 September 2017, IDBI Bank Limited file an application for vacating the ad-interim order dated 4 September 2017. The Attorney General submitted before this Court that the order of stay would result in a consequence which was unintended: control of JIL would be restored to the erstwhile management. Such a consequence would affect the rights of creditors and of the consumers as well. In the meantime, as a result of the ad-interim stay, the IRP had handed over records to JIL. Counsel for the home buyers contended that if the order of stay was being modified to enable the IRP to take back control, it was necessary to have their representative on the Committee of Creditors (CoC) . The regime of the Act did not at that stage include any representation for the home buyers on the CoC. 10 Accordingly, on 11 September 2017, this Court modified its earlier order dated 4 September 2017 in the following terms: a) The IRP shall forthwith take ov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt initiated steps to protect the interests of the home buyers. At that stage, it must be noted, the CoC as constituted under Section 21 of the IBC did not include a representative of the home buyers. Nor were the home buyers regarded as financial creditors under the IBC. The mechanism evolved by the Court was intended to provide a workable arrangement under the then prevailing regime so that the interests of the home buyers would not be ignored. 12 By an order dated 23 October 2017 leave was granted to the IRP to file an action plan and an information memorandum in a sealed cover before this Court. 13 JAL moved an application before this Court for vacating the direction for deposit of ₹ 2,000 crores or for a modification that would enable JAL to transfer its rights under a concession agreement in respect of the Yamuna Expressway (between NOIDA and Agra. This request was seriously opposed by the Attorney General as well as by counsel appearing on behalf of IDBI Bank and the Yamuna Expressway Industrial Development Authority. Counsel for the IRP drew the attention of the Court to the fact that the rights under the concession agreement belong to JIL which was subject to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their flats would be considered at a subsequent stage. Since the order for the deposit of ₹ 2,000 crores had not been complied with despite the end of the deadline under the previous directions, the Court issued further directions. As agreed by the Managing Director of JAL, an instalment of ₹ 100 crores was to be deposited by 15 April 2018 while a second instalment in the like amount was directed to be deposited by 10 May 2018. The amicus curiae informed the Court that information gathered from the web portal indicated that an amount of ₹ 1300 crores was required to be refunded by way of principal alone to the home buyers who were seeking refunds. The amicus curiae was requested to submit a project-wise chart to the Court, indicating the number of persons and the stage of completion. One of the grievances of the home buyers was that the developer was making demands towards monthly instalments despite being unable to complete construction. Consequently, a direction was issued restraining the developer from raising demands towards outstanding or future instalments in respect of those flat buyers who had expressed a desire to obtain refunds. By the order of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver, a window is provided to the resolution professional to seek an extension of a further period of 90 days upon a resolution from the CoC. The extension can be provided only once. 22 In the case of JIL, the period for completing the CIRP was to end on 6 February 2018. Based on the approval of the CoC an extension of 90 days was sought and granted by the NCLT by an order dated 12 February 2018. The extended period was to end on 12 May 2018. During the course of the process, the IRP invited expressions of interest in pursuance of which ten applicants including JAL submitted resolution plans. The IRP had made it clear while inviting applications for Expressions of Interest that the resolution plan to be submitted by the applicants must protect the interests of home buyers and provide for expeditious completion of the work of construction. The bid submitted by JAL was found to be ineligible in view of the bar contained in Section 29 A of the IBC and was not opened. Of the resolution plans submitted by nine resolution applicants, five were found not to be compliant with the IBC and were not not presented to the CoC for consideration. After initial negotiations, a discussion took pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , - (a) before the expiry of the insolvency resolution process period or the maximum period permitted for completion of the corporate insolvency resolution process under section 12 or the fast track corporate insolvency resolution process under section 56, as the case may be, does not receive a resolution plan under sub-section (6) of section 30; or (b) rejects the resolution plan under section 31 for the non-compliance of the requirements specified therein, it shall - (i) pass an order requiring the corporate debtor to be liquidated in the manner as laid down in this Chapter; (ii) issue a public announcement stating that the corporate debtor is in liquidation; and (iii) require such order to be sent to the authority with which the corporate debtor is registered. In terms of the provisions of Section 33(1), where the resolution plan has been rejected under Section 31, the NCLT is required to pass an order for the liquidation of the corporate debtor. 25 During the course of the hearing, there has been a unanimity of opinion that the liquidation of JIL will not subserve the interests of the home buyers. The home buyers have made valuable investments by contribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... creditors and authorised representatives of certain categories of persons and classes of creditors under Section 21(6) and Section 21(6A)(b). The CoC is responsible for approving crucial decisions and actions of the IRP, while managing the affairs of the corporate debtor under Section 28. The resolution plan approved by 66 % of the voting share in the CoC is submitted by the IRP to the NCLT for its approval. When the NCLT is satisfied that the plan approved by the CoC meets the requirement of Section 30(2) it will approve the plan, which will be binding on all stakeholders (Sections 21, 22, 24, 25,27, 28 and 30). Protecting Home Buyers: 27 The IBC, as it was originally enacted, did not contain an adequate recognition of the interests of home buyers in real estate projects. Home buyers are vital stake holders. The process of corporate insolvency resolution directly impacts upon their rights and interests. Yet the IBC, as initially crafted, did not protect them. The concerns of the home buyers have been sought to be assuaged by the Insolvency and Bankruptcy (Amendment) Ordinance, 2018 which came into force on 6 June 2018. As a result of the Ordinance, home buyers are brought ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . (1) A financial creditor either by itself or jointly with other financial creditors, or any other person on behalf of the financial creditor, as may be notified by the Central Government] may file an application for initiating corporate insolvency resolution process against a corporate debtor before the Adjudicating Authority when a default has occurred. Explanation. - For the purposes of this sub-section, a default includes a default in respect of a financial debt owed not only to the applicant financial creditor but to any other financial creditor of the corporate debtor. (2) The financial creditor shall make an application under sub-section (1) in such form and manner and accompanied with such fee as may be prescribed. (3) The financial creditor shall, along with the application furnish (a) record of the default recorded with the information utility or such other record or evidence of default as may be specified; (b)the name of the resolution professional proposed to act as an interim resolution professional; and (c) any other information as may be specified by the Board. (4) The Adjudicating Authority shall, within fourteen days of the receipt of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... creditor to the extent of the financial debt owed by the corporate debtor, and shall be included in the committee of creditors, with voting share proportionate to the extent of financial debts owed to such creditor; (b) such person shall be considered to be an operational creditor to the extent of the operational debt owed by the corporate debtor to such creditor. (6) Where the terms of the financial debt extended as part of a consortium arrangement or syndicated facility provide for a single trustee or agent to act for all financial creditors, each financial creditor may- (a) authorise the trustee or agent to act on his behalf in the committee of creditors to the extent of his voting share; (b) represent himself in the committee of creditors to the extent of his voting share; (c) appoint an insolvency professional (other than the resolution professional) at his own cost to represent himself in the committee of creditors to the extent of his voting share; or (d) exercise his right to vote to the extent of his voting share with one or more financial creditors jointly or severally. [ (6A) Where a financial debt- (a) is in the form of securities or deposits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntment of the authorised representative for any class of creditors shall not affect the validity of any decision taken by the committee. (4) The interim resolution professional shall provide the list of creditors in each class to the respective authorised representative appointed by the Adjudicating Authority. (5) The interim resolution professional or the resolution professional, as the case may be, shall provide an updated list of creditors in each class to the respective authorised representative as and when the list is updated. Clarification: The authorised representative shall have no role in receipt or verification of claims of creditors of the class he represents. (6) The interim resolution professional or the resolution professional, as the case may be, shall provide electronic means of communication between the authorised representative and the creditors in the class. (7) The voting share of a creditor in a class shall be in proportion to the financial debt which includes an interest at the rate of eight per cent per annum unless a different rate has been agreed to between the parties. (8) The authorised representative of creditors in a class shall be e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court seeking to explain the perspective of the developers. JAL is stated to be a public listed company with 5.57 lakh individual shareholders and fifteen directors (including eight independent directors and two nominee directors of lenders). In 2003, JAL was allotted rights for the construction of an expressway from NOIDA to Agra. A concession agreement was entered into with the Yamuna Expressway Industrial Development Authority. A special purpose vehicle, JIL was set up. Finance was obtained from a consortium of banks IDBI Bank being the lead bank against a partial mortgage of lands acquired in the NOIDA-Agra sector and a pledge of 51% of the shareholding held by JAL. A housing plan was envisaged for the construction of real estate projects in two locations of the land acquired: 1,162 acres in Wish Town, NOIDA and 1,355 acres in Mirzapur. JAL has stated that it has still to provide possession to 21,532 home buyers. According to JAL: 7. Till date: (i) Construction of 106 Towers (out of remaining 228 towers)- consisting of 11,336 units/flats is 50% to 90% complete, and (ii) Construction of 50 Towers consisting of 6,500 units is between 25% to 50% complete, and (iii ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lator issued under any other law for the time being in force, and at least a period of one year has lapsed from the date of such classification till the date of commencement of the corporate insolvency resolution process of the corporate debtor: Provided that the person shall be eligible to submit a resolution plan if such person makes payment of all overdue amounts with interest thereon and charges relating to nonperforming asset accounts before submission of resolution plan: Provided further that nothing in this clause shall apply to a resolution applicant where such applicant is a financial entity and is not a related party to the corporate debtor. Explanation I- For the purposes of this proviso, the expression related party shall not include a financial entity, regulated by a financial sector regulator, if it is a financial creditor of the corporate debtor and is a related party of the corporate debtor solely on account of conversion or substitution of debt into equity shares or instruments convertible into equity shares, prior to the insolvency commencement date. Explanation II.- For the purposes of this clause, where a resolution applicant has an account, or an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tee has been invoked by the creditor and remains unpaid in full or part]; (i) 5[is] subject to any disability, corresponding to clauses (a) to (h), under any law in a jurisdiction outside India; or (j) has a connected person not eligible under clauses (a) to (i). Explanation 6[I]. - For the purposes of this clause, the expression connected person means- (i) any person who is the promoter or in the management or control of the resolution applicant; or (ii) any person who shall be the promoter or in management or control of the business of the corporate debtor during the implementation of the resolution plan; or (iii) the holding company, subsidiary company, associate company or related party of a person referred to in clauses (i) and (ii): Provided that nothing in clause (iii) of Explanation I shall apply to a resolution applicant where such applicant is a financial entity and is not a related party of the corporate debtor: Provided further that the expression related party shall not include a financial entity, regulated by a financial sector regulator, if it is a financial creditor of the corporate debtor and is a related party of the corporate debtor so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or are otherwise undesirable, may misuse this situation due to lack of prohibition or restrictions to participate in the resolution or liquidation process, and gain or regain control of the corporate debtor. This may undermine the processes laid down in the Code as the unscrupulous person would be seen to be rewarded at the expense of creditors. In addition, in order to check that the undesirable persons who may have submitted their resolution plans in the absence of such a provision , responsibility is also being entrusted on the committee of creditors to give a reasonable period to repay overdue amounts and become eligible. (emphasis supplied) Parliament was evidently concerned over the fact that persons whose misconduct has contributed to defaults on the part of bidder companies misuse the absence of a bar on their participation in the resolution process to gain an entry. Parliament was of the view that to allow such persons to participate in the resolution process would undermine the salutary object and purpose of the Act. It was in this background that Section 29 A has now specified a list of persons who are not eligible to be resolution applicants. 32 Clauses (c) and ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olution process shall be completed within the period specified in that subsection]: Provided also that the eligibility criteria in section 29A as amended by the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 shall apply to the resolution applicant who has not submitted resolution plan as on the date of commencement of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018. 33 Mr Anand Grover appearing on behalf of the home buyers has opposed the proposal submitted by JAL/JIL on the following grounds: (i)) Loans given to JAL have been classified as Non Performing Assets which renders JAL ineligible as a resolution applicant/new promoter under Section 29A(b) of the IBC; (ii) In addition to Section 29A (b), JAL is also disqualified under Section 29A (g) of IBC. Section 29A(g) provides that a person who is engaged in a fraudulent transaction should not be allowed to bid for another company as such a person may again engage in fraudulent transactions. In May 2018, the NCLT Allahabad set aside a fraudulent transaction involving a mortgage of around 750 acres of JIL s land in favour of the lenders of JAL. This mortgage was without any consideration and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would not have cast the home buyers to the uncertainties of insolvency; (x) There are serious doubts about the credentials of JAL which has diverted funds from JIL towards its other businesses. The applicant associations had appointed ASA Financial Services to conduct an audit of JIL s financials and the audit report demonstrates that JAL may have diverted more than INR 10,000 crore from JIL; (xi) JAL is undergoing a serious financial crisis. This is clear from the following facts: (a) JAL has not yet honoured the order of this Court asking it to deposit ₹ 2,000 crore for protection of the interest of the home buyers. JAL has paid only ₹ 750 crores out of ₹ 2,000 crores, after the expiry of almost 10 months from 11 September 2017 which was the date of the initial order of this Court; (b) JAL has failed to pay even the latest instalment of ₹ 1,000 crores by 15 June 2018 in accordance with the order of this Court dated 16 May 2018; (c) JAL is a defaulter of more than 30 banks to the extent of around ₹ 30,000 crores. JAL has also defaulted on fixed deposits, foreign currency convertible bonds and payments to Noida Authority; (d) Even ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... projects. In this background it has also been submitted that following the opening of the web portal under the directions of the Court, only 8% of the home buyers have opted for refunds while 92% have chosen not to claim refunds thereby implying a confidence in the ability of JIL/JAL to complete the project. JIL, it has been submitted, has assets valued at ₹ 17,116 crores by bank valuers to whom they were submitted as security and even the distress value is ₹ 14,548 crores. Mr Nariman submitted that among the two sets of financial creditors of JIL and JAL: (i) the creditors of JIL are headed by IDBI Bank apart from which there are 12 other banks in the consortium; (ii) the financial creditors of JAL await formal orders of the NCLT to the scheme of arrangement which has been agreed to by all its 32 creditors under a Master Restructuring Arrangement. 37 We may note at this stage that counsel appearing on behalf of the home buyers have uniformly opposed the proposal of JIL/JAL. The home buyers have urged before this Court that they have no confidence in the ability of either JIL or JAL to complete the outstanding projects. The home buyers have urged that they have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate project and to allow them a statutory status in the insolvency resolution process. Unfortunately by the time that the Ordinance came into being on 6 June 2018, the period of 270 days had expired; the resolution plan of Lakshdeep was rejected and the IRP informed NCLT that no resolution plan had been approved within the extended period of 270 days on 12 May 2018. Having regard to the material change which has been brought about by the amendment of the IBC by the Ordinance and the fact that this Court has been in seisin of the proceedings to ensure that the home buyers are protected, we are of the view that it is but appropriate and to do complete justice to secure the interests of all concerned that the CIRP should be revived and CoC reconstituted as per the amended provisions to include the home buyers. Tn the facts of the present case, recourse to the power under Article 142 would be warranted to render complete justice. Parliament has undoubtedly provided a period of 180 days and an extended period of 90 days to complete the process. But in the present case a peculiar situation has arisen as a result of which the status of the home buyers which had not been recognised p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of the IBC afresh in all respects. A new CoC should be constituted in accordance with the amended provisions of the IBC to enforce the statutory status of the allottees as financial creditors. We also clarify that apart from the three bidders whose bids were found to be eligible by the IRP, it would be open to the IRP to invite fresh bids to facilitate a wider field of choice before the CoC. In that process, the offers made by the intervenors in this proceedings can also be considered by CoC anew. We are not inclined to evaluate the merits of the bids submitted by the bidders who were left in the fray, two of whom have intervened. All bids must follow the discipline of the IBC. We have, however, not accepted the submission to allow JIL or JAL and the erstwhile promoters to participate in the process. Their participation is expressly prohibited by Section 29 A and we decline to make any exception which would breach a salutary and express provision made in the IBC. 40 As we have stated earlier, an amount of ₹ 750 crores is lying in deposit before this Court pursuant to the interim directions, on which interest has accrued. The home buyers have earnestly sought the iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the major reasons for the enactment of the IBC was to protect the interest of lenders. The debt owing to the banks and financial institutions has been secured by the assets of JIL, to protect their interests. This debt originates in the public deposits of the banks and financial institutions, who are answerable to their stakeholders. Fourthly, the RBI has moved this Court for permission to initiate an insolvency resolution process. Parliament enacted the Banking Regulation (Amendment) Act 2017 by introducing Section 35 AA and Section 35 AB into the Banking Regulation Act 1949. The amendment empowers the Central government to authorise RBI to issue directions to any banking company to initiate an insolvency resolution process in respect of a default as understood under the IBC. Such an order was issued by the Central government on 5 May 2017. The RBI constituted an Internal Advisory Committee (IAC) consisting primarily of its independent directors. The IAC took up for consideration accounts which were classified either partly or wholly non-performing from amongst the top 500 exposures in the banking system as on 31 March 2017. As a first step, the IAC recommended all such non-perfo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the IBC. 42. We, accordingly, issue the following directions: (i) In exercise of the power vested in this Court under Article 142 of the Constitution, we direct that the initial period of 180 days for the conclusion of the CIRP in respect of JIL shall commence from the date of this order. If it becomes necessary to apply for a further extension of 90 days, we permit the NCLT to pass appropriate orders in accordance with the provisions of the IBC; (ii) We direct that a CoC shall be constituted afresh in accordance with the provisions of the Insolvency and Bankruptcy (Amendment) Ordinance, 2018, more particularly the amended definition of the expression financial creditors ; (iii) We permit the IRP to invite fresh expressions of interest for the submission of resolution plans by applicants, in addition to the three short-listed bidders whose bids or, as the case may be, revised bids may also be considered; (iv) JIL/JAL and their promoters shall be ineligible to participate in the CIRP by virtue of the provisions of Section 29A; (v) RBI is allowed, in terms of its application to this Court to direct the banks to initiate corporate insolvency resolution proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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