Economy

SC reserves order on JAL plea for hiving off toll collection

"We are not inclined to entertain the application for modification of the order dated 11th September, 2017".

The apex court, however, extended the time from October 27 to November 5 for the company to deposit Rs 2000 crore.

The Supreme Court today reserved its order in connection with the plea of real estate major, Jaypee Infratech, which sought its intervention and direction to lease one of its properties in the Yamuna Expressway to a Singapore-based company.

Senior counsel Parag Tripathi, appearing for the Interim Resolution Professional (IRP), told the court that Jaypee Associates can't, on their own, part with the toll collection operations as the Yamuna Expressway Authority and the state of Uttar Pradesh too were stakeholders in the expressway.

The apex court order had also said that to raise Rs 2000 crore, "if any assets or property of JAL have to be sold, that should be done after obtaining the prior approval of this court".

IRP through senior counsel Parag P Tripathi, argued that the rights under the Concession Agreement in respect of Yamuna Expressway are of JIL, which is subject to proceeding under the Insolvency & Bankruptcy Code and, therefore, it can not be transferred. They contended that a company had agreed to pay Rs 2500 crore to take over the project. The prayer of the company was opposed by Attorney General K K Venugopal and senior advocate Abhishek Manu Singhvi, appearing for the IDBI Limited.The counsel for Yamuna Expressway Industrial Development Authority also informed the court that the rights under the Concession Agreement were non-transferable. Terming it contempt of court, IDBI said that JAL can not be allowed to sell property which belongs to JIL. Technically, the Yamuna Expressway is owned by its subsidiary Jaypee Infratech, which is now facing insolvency proceedings before the National Company Law Tribunal (NCLT) at the behest of a consortium of banks, to which it owes over Rs 9,000 crore as debt. Neither can it be transferred or assigned to a third party, he said.

Jaypee Infratech has defaulted on Rs 526.11 crore of loans outstanding to IDBI Bank.

It had revived insolvency proceedings against Jaypee Infratech Ltd and given its management control to the IRP, appointed by the National Company Law Tribunal with immediate effect. "The applicant has been able to secure a commitment of an investor who has committed to invest Rs 2,500-Rs 3,000 crore against securitisation of toll from the Yamuna Expressway for a defined period".



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