IDBI Moves SC To Vacate The Stay Of Insolvency Proceeding Against Jaypee

A day after the Apex Court stayed the insolvency proceeding against Jaypee Infratech before NCLT, the IDBI bank today moved the top court saying the stay order will benefit the builder rather than the home buyers.

 Mentioning urgently before the Bench headed by Chief Justice of India J Dipak Misra, Senior Advocate A M Singhvi sought the bench to vacate the stay order.

"The stay order  on National Company Law Tribunal (NCLT ) of August 9 order will unintentionally benefit only Jaypee which will have a sound sleep  and Consumers are not left without remedy", Singhvi Argued.

According to IDBI, one of the banks gave loans to home buyers, the Insolvency Resolution Proceeding will take care of consumers.

Some home buyers who came to SC against insolvency proceedings were hand in glove with Jaypee Infratech, the counsel submitted.However, appearing for one of the home buyers, Senior Advocate K V Vishwanathan said the home buyers slept peacefully after the Top Court order.

The bench asked the bank to move an application formally and agreed hear it on Monday.

The bench yesterday had stayed the insolvency proceeding against the real estate firm on the petition filed by a group of homebuyers alleging that they have not received the flats so far and the insolvency proceedings initiated against the company will render them without any remedy.