NCLAT Dismisses Jaypee Greens Homeowners' Appeals Seeking Social Club Condition In JAL Resolution Plan

The National Company Law Appellate Tribunal (NCLAT) in Delhi has dismissed appeals filed by the Association of Independent House Owners of Jaypee Greens, refusing to interfere with an order declining to direct the inclusion of a mandatory condition in Jaiprakash Associates Ltd's resolution plan for the construction of a social club.

The appellate tribunal noted that the resolution plan had already been approved. It also took note of the Successful Resolution Applicant's (SRA) undertaking to engage with the association on the issue.

A bench of Officiating Chairperson Justice Yogesh Khanna and Technical Member Barun Mitra observed:

“Considering the fact, resolution plan has since been approved and also in view of the submissions made by the learned counsel for the respondent No. 2, we are not inclined to interfere with the impugned order.”

The appeals challenged a March 17, 2026 order of the National Company Law Tribunal (NCLT), Allahabad Bench. That order had dismissed an application filed by the association seeking a direction that the resolution plan should mandatorily provide for the construction of a social club.

The NCLT recorded that the Committee of Creditors had approved the resolution plan with 93.81% voting in its favour. It also noted that the Committee of Creditors comprised the allottees themselves.

While considering the appeals, the appellate tribunal referred to an affidavit dated February 12, 2026 executed by the SRA. In the affidavit, the SRA expressed its willingness to engage with the association and its members in good faith with a view to facilitating the development of an independent club.

The affidavit further stated that the SRA would carry out a comprehensive evaluation of all available options. It would examine the relevant facts and circumstances in detail before taking an appropriate decision. The exercise, according to the affidavit, would remain subject to approval of development plans, other statutory permissions, compliance with applicable law and the availability of adequate FAR.

During the hearing, counsel appearing for the SRA informed the appellate tribunal that the SRA would continue to abide by the undertaking contained in the affidavit. Taking note of that submission, as well as the fact that the resolution plan had already been approved, the appellate tribunal declined to interfere with the NCLT's order. It held that the appeals were devoid of merit and dismissed them.