The Supreme Court today agreed to hear a plea of IDBI Bank seeking modification of its order by which the insolvency proceedings against real estate firm Jaypee Infratech was stayed.
A bench comprising Chief Justice Dipak Misra and Justices Amitava Roy and A M Khanwilkar considered the submission of the bank that staying the order of the National Company Law Tribunal (NCLT) in Allahabad had reversed the position and, as a consequence, the company had gone back to defaulting promoters.
It posted the IDBI’s plea for hearing on September 11.
Senior advocate A M Singhvi, appearing for the bank, said the Jaypee group was in charge of the company again because of yesterday’s apex court order. The bank’s money was also public money and “we are seeking modification of that order,” he said.
The senior lawyer said the IDBI would like that the insolvency resolution process should settle the claims of home buyers along with the banking institutions.
Senior advocate Ajit Sinha, appearing for one of the home buyers, vehemently opposed the contention of the bank and said the home buyers were happy because of the apex court order which need not be changed.
The top court had yesterday stayed the insolvency proceedings against Jaypee Infratech at NCLT on a plea by some home buyers, who have neither got homes nor their money back and are seeking protection of their interest.
Flat buyers, under the Insolvency and Bankruptcy Code of 2016, do not fall in the category of secured creditors like banks and hence 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.
The buyers had contended that around Rs 25,000 crore worth of money of flat buyers and others had 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 Jaypee Infratech projects.
The NCLT at Allahabad had initiated the insolvency proceedings against Jaypee Infratech based on IDBI’s charge that the company has defaulted in loan repayment.
As carried in ani on 6/9/2017