SC Stays Insolvency Proceedings Against Jaypee Infratech [Read Order]

“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”: Homebuyers to SC

In a relief to 32,000 home buyers, the Supreme Court on Monday stayed the insolvency proceedings against real estate firm Jaypee Infratech going on at the Allahabad National Company Law Tribunal (NCLT) at the instance of financier IDBI.

At the end of a 45-minute proceeding in a courtroom packed with aggrieved home buyers and their lawyers, a  bench of Chief Justice Dipak Misra and justices A M Khanwilkar and D Y Chandrachud also issued notice to Jaypee.

Thousands of homebuyers have not yet received possession of their dream flats booked with the company.

The bench has also sought the replies of RBI and others on a PIL filed by Chitra Sharma and other homebuyers alleging that they have not received the flats and the insolvency proceedings initiated against the company will render them without any remedy.

“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 said. The bench posted a batch of matters for further proceedings on October 10.

The plea was moved in the apex court seeking protection of the interests of over 30,000 buyers who invested hard- earned money to book their dream homes in 27 different projects of debt-ridden realty firm Jaypee Infratech.