# In the matter of Jaypee Healthcare Ltd.

> NCLT judgment dated 2024-04-18. Citation: TCN-2024-NCLT-01683. The case involves an application filed by Suraksha Realty Ltd. and Lakshwadeep Finance and…

- **Court:** NCLT
- **Order date:** 18 Apr 2024
- **Citation:** TCN-2024-NCLT-01683
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jaypee-healthcare-ltd-a2869538

## Summary

### Background

The case involves an application filed by Suraksha Realty Ltd. and Lakshwadeep Finance and Investment Private Limited (collectively referred to as 'SRAs') under Rule 11 of the NCLT Rules, 2016, seeking impleadment in a company petition against Jaypee Healthcare Limited (JHL), the Corporate Debtor. The SRAs are the Successful Resolution Applicants of Jaypee Infratech Limited (JIL), the holding company of JHL. The SRAs contend that they are necessary and proper parties as the resolution plan for JIL provides for an amicable solution with the lenders of JHL. The financial creditor, J.C. Flowers Asset Reconstruction Pvt. Ltd., opposed the impleadment, arguing that only the financial creditor and corporate debtor are necessary parties at the admission stage of a Section 7

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## Facts

1. Suraksha Realty Ltd. and Lakshwadeep Finance and Investment Private Limited (SRAs) filed an application under Rule 11 of the NCLT Rules, 2016, seeking impleadment in a company petition against Jaypee Healthcare Limited (JHL).
2. SRAs are the Successful Resolution Applicants of Jaypee Infratech Limited (JIL), which is the holding company of JHL.
3. J.C. Flowers Asset Reconstruction Pvt. Ltd. filed a Section 7 application under the IBC, 2016, against JHL, replacing Yes Bank Ltd.
4. The Section 7 application was initially kept in abeyance but was later restarted.
5. SRAs contend that they are necessary and proper parties as the resolution plan for JIL provides for an amicable solution with the lenders of JHL.
6. The financial creditor, J.C. Flowers, opposed the impleadment,

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## Issues and analysis

### Issue 1: Whether the Applicants (Suraksha Realty Ltd. and Lakshwadeep Finance and Investment Private …

**Ratio:** The ratio is based on the principle that parties whose rights and interests are directly

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**Reasoning:** The NCLT reasoned that the Applicants, as the SRAs of JIL, the holding company of JHL,

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**Interpretation:** The interpretation is that the term 'necessary and proper party' should be

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**Application:** The NCLT applied the ratio and reasoning to the specific facts of the case,

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Suraksha Realty…
- **Respondents:** Jaypee Healthcare…; JC FLOWERS ASSET…

## Timeline

- **2016-01-01 — NCLT Rules…**: Application filed under Rule 11 of the…
- **2019-01-01 — CP (IB) NO.512…**: The case is registered as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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