# In the matter of Jaiprakash Associates Limited vs. Jaypee Infratech Limited

> NCLAT judgment dated 2023-08-28. Citation: TCN-2023-NCLAT-00244. The case involves two appeals filed against the same order dated 07th March, 2023, passed by…

- **Court:** NCLAT
- **Order date:** 28 Aug 2023
- **Citation:** TCN-2023-NCLAT-00244
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/jaiprakash-associates-limited-vs-jaypee-infratech-limited-affc8253

## Summary

### Background

The case involves two appeals filed against the same order dated 07th March, 2023, passed by the National Company Law Tribunal (NCLT), New Delhi, Principal Bench. The NCLT order disposed of I.A. No. 2593/PB/2021 filed by the Interim Resolution Professional (IRP) and dismissed I.A. No. 631/PB/2022. The appeals concern the appropriation of Rs. 750 Crores, which was deposited in the Supreme Court in relation to a writ petition filed to protect the interests of home buyers in a project floated by Jaypee Infratech Limited (JIL). Company Appeal (AT) Ins. No. 302 of 2023 was filed by Jaiprakash Associates Limited (JAL), and Company Appeal (AT) Ins. No. 507 of 2023 was filed by Jaypee Infratech Limited (JIL).

## Facts

Jaiprakash Associates Limited (JAL) and Jaypee Infratech Limited (JIL) are parties involved in a corporate insolvency resolution process (CIRP). A writ petition was filed in the Supreme Court to protect the interests of home buyers in a project floated by JIL. The Supreme Court directed JAL to deposit Rs. 750 Crores. JAL filed a claim in Form B as an Operational Creditor in the CIRP of JIL. Disputes arose regarding the reconciliation of accounts between JAL and JIL, particularly concerning the Rs. 750 Crores. The Adjudicating Authority appointed Grant Thornton (GT) as an independent auditor to carry out the reconciliation. GT submitted its report, and the Adjudicating Authority passed an order determining the appropriation of the Rs. 750 Crores. Both JAL and JIL filed

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## Issues and analysis

### Issue 1: Whether the ambit and scope of Reconciliation of accounts between JAL & JIL as per directions …

**Ratio:** The reconciliation was limited to determining the amount receivable by JIL and its

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**Reasoning:** The Hon'ble Supreme Court's directions in "Jaypee Kensington" focused on

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**Interpretation:** The Supreme Court's intent was to ensure that the Rs. 750 Crores deposited by

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**Application:** The NCLAT found that the Adjudicating Authority correctly limited the scope of

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Jaiprakash…
- **Respondents:** Jaypee Infratech…

## Timeline

- **2017-08-09 — CIRP Comm…**: Corporate Insolvency Resolution Process commenced against Jaypee Infratech Limited (JIL)…
- **2017-08-10 — Public Annou…**: IRP issued public announcement on 10th August, 2017, in pursuance of which JAL filed its…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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