Kindly note the hearing in the PIL was going on day-to-day basis and finally the Hon’ble Supreme Court was pleased to reserve its order on the interim arrangement (way forward) with respect to possession and refund seekers today after hearing me and all interested stake holders. Let me dispel the feeling that some people had, that the court is likely to close the PIL and remand the matter back to NCLT. That is not happening.
Summary:
Counsels were asked to give written submissions and 5 minutes for arguments to each counsel. No repetition of points/suggestions were allowed by the Hon’ble court since there were a number of counsels who desired to make submissions. Counsels for homebuyers, Insolvency Board, Banks, IRP, Jaypee, Amicus and other stake holders were duly heard. I am attaching the copy of our submissions alongwith copy of the submissions of IRP, Jaypee and Amicus for your reference.
It was extensively argued that an independent committee be setup which can assess the financial health and credibility of interested bidders who are expressed interest in taking over the project and complete construction. Suraksha and Cube etc were represented in court and they contended that their proposal be considered. It was also suggested that a Retd SC Judge supported by distinguished professional with financial background be allowed to participate in the meeting to espouse the cause of the Homebuyers.
Some arguments were made to the effect that the statutory time period as provided in the code should be increased so that the interested bidders may be allowed to revise and resubmit the bid. It was also contended that the new Committee of Creditors should now allow the participation of Hombuyers in view of the recent amendment in the Act.
It was a united argument across the board by all stakeholders that liquidation proceedings shouldn’t happen as it will benefit no one and the Hon’ble Court is conscious of the implications.
Many home buyers spoke, could not gather their names, few spoke very well.
Notable was a senior lady adv, she pitched for *Secured financial creditor*, since JIL and JAL has both signed my lettter to morgage, so both bank and builder has foregone their rights. I am paying EMI, i am responsible for default, i bear the risk. So, i am *secured financial creditor* not banks, for EMI cases.
*Aryamaan Sundaram, PNB* : spoke at length, he had personal rappo with bench, but first he said he represents all banks with EMI, the he said only PNB and Axis. Later when he rose, he said i represent only PNB.
His limited point was refund should be given to bank first, they are not charging interest, no delay payment, only principal, balance should be paid to home buyer.
*RBI* : JAL has loan of 21,000 cr from financial creditor, operational will be more. There is a stay, once vacated by SC, JAL will go under IBC for resolution.
*Fali S Nariman, JP* : spoke for 15 min, mainly three points.
1. 92% home buyers voted in favour of JP, they want possession, they have reposed faith in JP to construct. (This argument didn't fly).
2. 270 days under statute is over on 12 May. Now only liquidation, statute does not allow extension. But in Hbs interest and thier faith JP wants to construct. Existing builder is better placed than anyone else to continue construction. New bidders have sought 6 months to start the work, i am make 500 every month.
3. SC should appoint an expert committee interms of Order dt 4 July, to evaluate the financial viablity of JIL and JAL to construct.
*Parag Tripathi, IRP* : spoke for good 10 min at multiple ocassions. It is not a fit case for Liquidation. Then he repeated 2 options of COC-NCLT or expert committee.
Today IRP changed stand from 3 retd SC judges to Expert Committee - in sync with JP's arguments.
*Tushar Mehta, IBBI* : reiterated earlier stand, reminded Court what RBI has said.
*Cube, Gopal Jain & Suraksha, Jayant Bhusan* - spoke for 5 min, cleared their stand.
*Mr Sinha* : i could not recognize his voice today, maybe he didn't speak.
*Mohana Sharma* cracked some joke on AG, humor in court.
*AG:* we had exhausted our turn, so no slot. But he case an order by Justice Chandrachur under some section 55, where SC has held that home buyers are *secured.* CJI said to hand over the court order, there was some discussion in bench on this. AG also spoke briefly about his written submission.
*Govt lawyer TM* : he put the last nail in the coffin after Fali spoke. He said section 29 is eligibility and section 12 is procedural. If SC uses its extraordinary powers under article 141, and relaxes 29A for JP, then *it will open floodgates* in corporate resolution cases spread across the couurts in entire country.
270 days under section 12 is procedural, SC can relax it without using 141, easy.
SC should not use 141 to *dis-horse a staute* by using its special powers.
*CJI said:*
- Liquidation cannot happen
- We will see construction for 92%
- We will pass interim order and give direction.
- Case continues in SC.
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