The Supreme Court Tuesday was “appalled” more than arrest of court-appointed Interim Resolution Professional (IRP) for managing the affairs of debt-ridden Jaypee Infratch Limited (JIL) in a criminal case by Uttar Pradesh police and ordered his forthwith release even though issuing a show trigger notice to an erring cop. The apex court observed that the police official dealing with the case is not familiar with the provision of privilege of interim resolution appointed by the court below the IBC. Anuj Jain was appointed by the prime court below the Insolvency and Bankruptcy Code (IBC) and was entrusted with the job to guarantee functioning of Jaypee Infratch till the resolution course of action to resurrect the ailing enterprise is decided. He was arrested on Monday from Mumbai by the Greater Noida police in connection with an FIR alleging that the Jaypee Infratech Limited (JIL), the operator of the 165-kilometer extended Yamuna Expressway, and its IRP Anuj Jain have not taken up security measures recommended by the IIT in its security audit carried out in 2018 to lessen road accidents.
Ordering Greater Noida police and the magistrate concerned to release Jain devoid of imposing any situation upon getting its order via e-mail, a bench of Justices A M Khanwilkar and Dinesh Maheshwari asked the workplace of the Registrar General (Judicial) of the apex court to make a contact to the workplace of the judicial magistrate to guarantee instant compliance.
“We are appalled to see that the manner in which the Uttar Pradesh Police has handled this case emanating from FIR No.0098/2021, registered at Police Station Beta-II in District Greater Noida, including to take the extreme step to arrest the IRP, Anuj Jain, who was working in that capacity pursuant to the order passed by the court and entrusted with the functioning of the company in question,” the bench ordered. “In the meantime, we direct immediate release of the applicant, Anuj Jain, who is presently in custody of Police Station, Beta-II, District Greater Noida, Uttar Pradesh and had been produced today … before the Court of Chief Judicial Magistrate, Gautam Buddh Nagar,” it stated. The bench expressed surprise more than the response of the state government that Investigating Officer, Bijendra Singh, was of the view that the IRP could leave India at any time to keep away from the prosecution and for securing his presence believed it needed to arrest him from Mumbai.
“We will examine this aspect of the matter elaborately at appropriate time by treating this application as substantive writ petition filed by the applicant under Article 32 of the Constitution of India and to be numbered accordingly,” it ordered. “We further direct the Investigating Officer not to take any coercive action against the applicant in connection with the subject F.I.R. until further orders,” it ordered.
Issuing notice to IO Bijender Singh, the bench asked as to why acceptable action be not taken against him for taking such “drastic action” against Jain. “He shall file his personal affidavit explaining the position within two weeks from today. List the writ petition after two weeks,” it stated. During the hearing, it took the submissions of senior advocate Parag Tripathi and Siddharth Luthra, appearing for the IRP, that the function of the IRP and the statutory rights and privileges readily available to him had been not taken note of by the state police. How can the IRP be held criminally liable for not spending Rs 115 crore for constructing “crash barriers” on the Yamuna expressway, they argued. Earlier, the apex court on August 6, 2020, had transferred to itself the appeals pending prior to the National Company Law Appellate Tribunal (NCLAT) against the NBCC program to obtain debt-ridden JIL and construct more than 20,000 pending flats.
The prime court had stated that all the appeals prior to NCLAT and the apex court will be heard with each other to keep away from additional delay in the execution of the scheme.