NCLAT issues notice as Jaypee Infratech minority shareholders seek compensation

A group of minority shareholders of Jaypee Infratech has moved the National Company Law Appellate Tribunal (NCLAT) to get the right compensation in the delisting process of the debt-ridden firm. A three-member National Company Law Appellate Tribunal (NCLAT) bench has issued notices to NBCC, IDBI Bank, and resolution professional of Jaypee Infratech as well as to the bourses NSE and BSE.

The appellate tribunal has ordered to list the plea of a bunch of shareholders for admission on August 17 along with another petition in the ongoing insolvency proceedings.

Blue-chip Government of India Navratna enterprise and a Central Public Sector undertaking NBCC has got an approval from creditors and the National Company Law Tribunal (NCLT) to acquire Jaypee Infratech. NBCC has challenged some modifications by the tribunal in its Resolution Plan’ regarding payment to unclaimed Fixed Deposit Holders.

Waives and accepts notice on behalf of erstwhile Interim Resolution Professional Learned counsel for the Appellant shall provide a complete set of paper-book on Respondent No 1 (RP) within a week. Let notice be issued on rest of the Respondents, said NCLAT bench headed by Acting Chairperson Justice B L Bhat.
The minority shareholders have filed the plea to ask for exit price at fair market value.
These shareholders of Jaypee Infratech have urged the appellate tribunal to either set aside or modify the order passed by the NCLT approving the resolution plan of NBCC on March 3, 2020.

According to the petition filed through advocates Rohan Jaitely and Akshay Sharma “The impugned order dated March 3, 2020, passed by the adjudicating authority (NCLT) be set aside/quashed or suitably modified to protect the interests of the appellants herein being the minority shareholders of the company”.
The shareholders have also requested NCLAT to direct Respondent No 4 (BSE) and Respondent No 5 (NSE) not to delist the shares of the corporate debtor (Jaypee Infratech) till the appellants (minority shareholders) are adequately compensated by Respondent No 2 (NBCC).

They have also requested NCLAT to give directions to the resolution professional of the company and NBCC to “consider giving a fair market value of the equity shares” held by them.