SC Stays Insolvency Proceedings Against Jaypee Infratech
The SC agreed to examine homebuyers' plea and will hear all cases on October 10. The bench issued notice to Jaypee and others on plea by homebuyers who haven’t received possession of flats.
New Delhi: The Supreme Court on Monday stayed insolvency proceedings against Jaypee Infratech.
The SC agreed to examine homebuyers' plea and will hear all cases on October 10. A bench comprising Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud also issued notice to Jaypee and others on plea by homebuyers who haven’t received possession of flats.
The plea said the homebuyers, being unsecured creditors, will get nothing out of the insolvency proceedings as the dues of financial institutions, which are secured creditors, would be cleared first.
The plea was moved in the apex court seeking protection of the interests of over 30,000 homebuyers who invested hard-earned money to book their dream homes in 27 different projects of debt-ridden realty firm Jaypee Infratech.
The plea has sought a direction to the Centre and others that the Insolvency and Bankruptcy Code "shall not curtail the legal statutory and vested rights of the flat owners/buyers as consumers" defined under the Consumer Protection Act.
Hundreds of home buyers have been left in the lurch after the National Company Law Tribunal (NCLT), on August 10, admitted the IDBI Bank's plea for initiating insolvency proceedings against the debt-ridden realty company for defaulting on a Rs 526-crore loan.
Jaypee Infratech is into road construction and real estate business. It has constructed the Yamuna Expressway, connecting Delhi-Agra.
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