SC stays insolvency proceedings against Jaypee Infratech
By Team Legistify / 2017-09-06

Have a Legal Issue?

Get connected to the Best Lawyers and Chartered Accountants Near You!


The Supreme Court today stayed the insolvency proceedings against real estate firm Jaypee Infratech at the National Company Law Tribunal (NCLT) and sought the firm’s response on a plea seeking protection of the interests of hassled home buyers who have neither got homes nor their money back.

A bench headed by Chief Justice Dipak Misra also asked Attorney General K K Venugopal to assist it in deciding a batch of petitions opposing the insolvency proceedings and seeking protection of the home buyers’ interests.“ We will pass a stay order on the proceedings at NCLT (at Allahabad). Issue notice (on pleas of home buyers), ” the bench, which also comprised justices A M Khanwilkar and D Y Chandrachud, said.

Picture Courtesy- Siasat

Flat buyers, under the Insolvency and Bankruptcy Code of 2016, do not fall in the category of secured creditors like banks and hence they can get back their money only if something is left after repaying the secured and operational creditors, one of the pleas filed by some home buyers said.It was alleged by senior advocate Ajit Sinha, appearing for petitioner Chitra Sharma, that around Rs 25,000 crore worth of money of flat buyers and others has been at stake and the insolvency proceedings were initiated “for a petty sum of Rs 500 crore”.Around 32,000 persons had booked flats in the projects of Jaypee Infratech.

None

Have a Legal Issue?

Get connected to the Best Lawyers and Chartered Accountants Near You!


Related Posts

Read More News on Similar Topics