Supreme Court directs UP Police to immediately release Jaypee Infra IRP – The Economic Times

Clipped from: https://economictimes.indiatimes.com/news/politics-and-nation/supreme-court-appalled-over-arrest-of-court-appointed-irp-for-jaypee-infratech-orders-immediate-release/articleshow/81295898.cmsSynopsis

“We direct immediate release of the applicant, Anuj Jain, who is presently in the custody of Police,” said the division bench in its 5-page order. “We further direct the Investigating Officer not to take any coercive action against the applicant (Jain) in connection with the subject FIR until further orders.”

Coming down heavily on the Uttar Pradesh Government and the State Police, the Supreme Court has directed them to immediately release Anuj Jain, the Insolvency Resolution Professional (IRP) ofJaypee InfratechNSE 2.94 % Ltd (JIL) from the police custody.

The division bench of Justice AM Khanwilkar and Justice Dinesh Maheshwari while granting bail also observed that the police officer dealing with the case was not familiar with the provisions of the privilege of interim resolution appointed by the Court, in terms of Section 233 of the Insolvency and Bankruptcy Code.

“We direct immediate release of the applicant, Anuj Jain, who is presently in the custody of Police,” said the division bench in its 5-page order. “We further direct the Investigating Officer not to take any coercive action against the applicant (Jain) in connection with the subject FIR until further orders.”

In the case, the Yamuna Expressway Industrial Development Authority (YEIDA) had written a letter to the Commissioner of Police at Noida and alleged that an accident had occurred on Yamuna Express on February 23, 2021, in which seven people died, was due to inaction on the part of the IRP in adhering to road safety measures at Yamuna Expressway being built and operated by JIL in terms of Concession Agreement of February 7, 2003. The authority had requested filing of an FIR against the IRP.

Subsequently, the UP Police had registered an FIR (First Information Report) arrested the IRP from Mumbai as well.

Senior Counsels Parag Tripathi and Sidharth Luthra, appearing for the IRP argued that action on the part of Respondent No 1 (YEIDA) and other against the IRP is arbitrary and without any basis at all. Specifically, when Respondent No 1 is fully aware and is a party to all the steps already taken and being taken by the IRP in compliance of the road safety measures at the Yamuna Expressway despite the insolvency situation of JIL.

“We also issue a notice to the Investigating Officer, Bijender Singh, Sub-Inspector, as to why appropriate action is not taken against him for taking such drastic action against the applicant,” said the Apex Court in its order. “He shall file his personal affidavit explaining the position within two weeks from today.”

When contacted, Arun Vir Singh, Chief Executive of YEIDA declined to comment on the development since the matter is subjudice.

Last year in June, the Supreme Court transferred to itself all the appeals pending before the National Company Law Appellate Tribunal (NCLAT) related to the debt-ridden firm Jaypee to ensure no further delay in execution of theNBCCNSE 6.73 %‘s resolution plan.

Reportedly, several home buyers moved the Supreme Court against the NCLAT order that gave the conditional approval to NBCC to implement its proposal to acquire Jaypee Infratech and complete the construction of stalled flats.

A consortium of banks led by IDBI had earlier initiated insolvency proceedings against Jaypee for failing to repay a debt of around Rs 24,000 crore.

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