The government on Thursday assured the Supreme Court that the amendments done in the Insolvency and Bankruptcy Code (IBC) would protect the interest of all stake holders of debt-ridden Jaypee Infratech.
While hearing the case, the top court asked the government to bring an unanimous proposal to resolve home buyers' issues.
It would be pertinent to mention that union cabinet on Wednesday has approved as many as seven changes in the IBC 2016 including the extension of period of resolution process from 270 days to 330 days. At present, any firm gets a period of 270 days to resolve the issue under the IBC.
Another major change which has come into place is voting percentage for resolution by the Committee of Creditors (CoC), including home buyers.
The government stated that the the amendments were done to seek the threshold for the resolution plan to 50 percent of COC from the current 66 percent. Advocate Ashwarya Sinha, representing the home buyers said, “It may favour the home buyers and altering these terms would make it a lot easier for the resolution plan.”
However, amended rules would need to be approved by the Parliament. It may be presented for the discussion during ongoing session. The government has also supported its decision to grant status of financial creditors to the home buyers and it would protect the interest of around 23,000 Jaypee Infratech home buyers.