In Brief
The Supreme Court upheld the approval of NBCC's resolution plan for Jaypee Infratech Limited, addressing complex issues in corporate insolvency resolution. The Court clarified the Adjudicating Authority's limited jurisdiction: it cannot interfere with the commercial wisdom of the Committee of Creditors and can only examine statutory compliance. Homebuyers, voting as a single class, are collectively bound by the authorized representative's vote approving the plan—individual homebuyers cannot later dissent. Payment to dissenting financial creditors must be in cash, not equity or land. The INR 750 crores deposited by JAL is JIL's asset for homebuyers' benefit. YEIDA's consent remains required for material Concession Agreement alterations. The Court rejected challenges from dissatisfied homebuyers, minority shareholders, and others, emphasizing the Code's finality once approved by the requisite majority.
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