JAL had told the SC bench it was willing to deposit Rs 600 crore more to refund money to the home buyers if it was allowed to dispose of its identified assets.
Banks and financial institutions (FIs), which have lent money to Jaiprakash Associates Limited (JAL), on Tuesday urged the Supreme Court that the assets of holding firm JAL should not used for refunding money to home buyers of its subsidiary firm Jaypee Infratech Ltd (JIL).
JAL, which has already deposited Rs 750 crore with the apex court registry, had told the bench headed by Chief Justice Dipak Misra that it was willing to deposit Rs 600 crore more to refund money to the home buyers if it was allowed to dispose of its identified assets, including a cement plant at Rewa in Madhya Pradesh.
Senior advocate Shyam Divan, appearing for the consortium of banks and FIs led by ICICI Bank, said while JAL has moved the National Company Law Tribunal (NCLT), Allahabad with its restructuring plan. JAL's subsidiary firm JIL owes money to home buyers and was undergoing liquidation process.
Stressing the need for segregating the two issues, Divan told the bench, also comprising justices A M Khanwilkar and D Y Chandrachud, that the exposure of banks and FIs in JAL was to the tune of Rs 21,593 crore, out of which Rs 4,750 crore was of ICICI.
"These are two (JAL and JIL) separate legal entities and if JAL was forced to pay for JIL then it will have adverse impact on JAL," he said, adding that JAL's scheme on restructuring was pending with the NCLT, and the RBI can also be taken on board in the matter.
Additional Solicitor General Tushar Mehta, appearing for the Insolvency Resolution Professional (IRP), referred to the amended provision of the insolvency law and said that now home buyers have also been included in the list of creditors whose interests can be secured in the insolvency proceedings. The hearing on the pleas of home buyers remained inconclusive and would continue tomorrow.
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