SC relief for 33,000 Jaypee homebuyers
The Supreme Court offered a sigh of relief to homebuyers on Monday as it stayed insolvency proceedings against real estate firm Jaypee Infratech at National Company Law Tribunal (NCLT), Allahabad.
The bench of Chief Justice of India Dipak Misra along with Justices AM Khanwilkar and DY Chandrachud issued notice to the real estate giant and others at the instance of IDBI and a plea filed by homebuyers who haven’t received possession of their flats.
According to the Insolvency and Bankruptcy Code (IBC), which was passed by the Parliament in 2016, if insolvency proceedings are initiated against a company, all court proceedings attached to it are stayed. In August, homebuyers were left in a lurge after the NCLT admitted IDBI Bank’s plea to initiate insolvency proceedings against the debt-ridden company for defaulting on a loan to the tune of Rs 526 crore.
Homebuyer Chitra Sharma’s plea offers respite to almost 33,000 buyers who invested their money in 27 projects by the real estate firm.
In her plea, Sharma alleged that the NCLT will affect homebuyers – who are considered as unsecured creditors, and will get nothing. The dues of financial institutions who are secured creditors will be cleared first.
Sharma’s plea challenged the validity of the …read more
