Jaypee Infra: As Centre fails to present policy, eyeballs shift to NCLAT hearing

Photo: City Spidey
Posted: Jul 12, 2019

Despite the direction of the Supreme Court, the union government did not present a policy as a proposal to resolve the Jaypee Infratech home buyers' issue on Thursday. Instead, it urged the apex court to adjourn the hearing as the case was listed before the National Company Law Appellate Tribunal (NCLAT) on July 17.

The court fixed the matter for hearing on a home buyer’s petition on July 18, with assuring home buyers that, it would intervene to protect the interest of nearly 21,000 flat buyers in stalled housing projects of Jaypee Infratech in Noida and Greater Noida.

Now, the attention of home buyers has shifted to NCLAT, an upper body of National Company Law Tribunal (NCLT) constituted in June 2016.

Chitra Sharma, a home buyer in Jaypee Infratech, had pleaded before the court to pass an interim order to stop liquidation of the company to protect the interest of over 20,000 home buyers. The court asked the buyers to wait for the outcome of the tribunal proceeding and on the basis of that outcome, it will hear the case on July 18.

The company – Jaypee Infratech which has launched several hosing projects in Noida and Greater Noida area is reeling under insolvency proceeding since last two years after IDBI Bank, the highest lender in the company approached the Tribunal seeking insolvency under the Insolvency and Bankruptcy Code, 2016.

The matter is pending before the NCLAT as there has been allotment of 270 days to bring a proposal to resolve flat buyers issue with unanimous consent of all stake holders. The Interim Resolution Professional (IRP), Anuj Jain, was appointed by the NCLT to resolve the issue within given period of nine months.

The Committee of Creditors (CoC), including the representative of home buyers, headed by IRP could not succeed in having unanimous consent of all stakeholders on resolution proposals submitted by the state-owned National Buildings Construction Company (NBCC) and Suraksha Group.

Advocate, Ritesh Kumar talking to City Spidey said that the situation for home buyers has spiralled back to the place where it begun. According to him, the NCLAT is likely to hear whether liquidation to be imposed or not. 

“What I have learned that the NCLAT has asked all the stakeholders to be present during the hearing. It may happen that home buyers get extension on liquidation of the company. Information has also been received that the Supreme Court has asked the Tribunal to bring out the proposal to avoid liquidation,” he said.

TAGS: Jaypee Infratech case / Jaypee case in SC / NCLAT hearing in SC / Uniform proposal on buyers issue / Noida news