National Buildings Construction Corporation (NBCC) — has sought from the Supreme Court four weeks more to assess whether it needs to submit a fresh and modified resolution plan to the National Company Law Tribunal (NCLT) for the construction of 17,000 flats in Wish Town.
The NBCC application, submitted with the apex court on April 3, also says that it may not submit a fresh resolution plan at the end of four weeks if it finds the circumstances “unviable”.
“It is submitted that the applicant is requesting for an extension of further four weeks’ time to assess the viability and feasibility of submitting a fresh/modified resolution plan for JIL. In case, submitting a plan in the circumstances stated above is found to be unviable, the applicant reserves its rights to not submit any further plans,” the application reads.
The Supreme Court had on March 24 asked NBCC and Suraksha — the two resolution applicants in the Jaypee Infratech Limited (JIL) insolvency resolution — to submit fresh proposals within two weeks. “My client needs at least four weeks more, as mentioned in the application,” said Prateek Kumar, who is representing NBCC in court.
In its application, the construction company also referred to a “cash flow” problem that may arise because of the “non-availability of Rs 750 crore”. On March 24, the apex court had said that the company chosen to complete the Wish Town flats would not have access to the Rs 750 crore that was deposited in the court by Jaiprakash Associates Limited (JAL) in favour of JIL.
Meanwhile, Anuj Jain, the resolution professional in the Wish Town case, confirmed that a financial management company, Grant Thorton, had been appointed to settle the internal transactions between JIL and JAL.
Wish Town buyers, who have sought the PM’s intervention in completing the flats, reacted strongly to NBCC’s appeal for an extension. “We will strengthen our protests in the days to come,” said Pramod Kumar, a buyer.
JIL is facing insolvency proceedings since 2017 for non-payment of corporate debt.