Economy

Jaypee Infratech gets Supreme Court breather

Jaypee Infratech gets Supreme Court breather”

There is finally some hope for almost 32,000 buyers of Jaypee Housing projects after the Supreme Court on Monday stayed the insolvency proceedings initiated against Jaypee Infrastructure Limited (JIL) before the National Company Law Tribunal (NCLT), Allahabad Bench.

The Allahabad bench of National Company Law Tribunal had earlier gave a go-ahead for an insolvency proceedings to be started against Jaypee Infratech based on the provisions of Insolvency and Bankruptcy Code, 2016. We can only comment on the order of Supreme Court after we read it.

The home buyers, in the plea, referred to the provisions of the Code and the order passed by the Allahabad bench of the NCLT and said that even decrees, passed by civil courts and consumer fora, in their favour can not be executed once insolvency proceedings begin.

According to reports, Jaypee Infratech - a subsidiary of Jaiprakash Associates - defaulted or has not made return payment of Rs 526.11 crore of loans due to be paid back to IDBI Bank.

Summary: Sharma suggested that if the insolvency proceedings against the company were unsuccessful, then liquidation proceedings could be initiated.

The Supreme Court has asked IDBI Bank to file an application and has scheduled the hearing in the matter for October 11, he informed.

However, those who had booked flats in Jaypee's housing projects have opposed IDBI Bank's fresh submission before the Supreme Court.

The home buyers had expressed concern that the insolvency proceedings would leave them without remedy to either a house or compensation.

The PIL also said that a direction may be issued to the government that flat owners/buyers be declared as as a secured creditor like banks and FIs.

The petition alleged that the action of the Ministries of Finance and Corporate Affairs of introducing Section 14 of the Code was "unjust, unfair and unreasonable" and violative of Article 14 (Right to Equality) and 21 (Right to Life) of the Constitution. However, on 16 August, IBC was amended to include homebuyers as another category of individual creditors.

Seeking a stay on NCLT's August order, petitioner further urged the court to conduct a forensic audit of Jaypee Infra and Jaiprakash Associates to assess the extent of their bankruptcy, the daily reported.

The government is trying to clean up the multi-crore real estate business with a landmark law created to protect millions of homebuyers facing harassment because of limited legal options at times of dispute.

In a statement released last month, Jain requested home buyers to submit the related claim forms by 24 August, and the supporting documents subsequently, but before a resolution plan is filed.



Like this

Latest


05 September 2017
Sangamo Therapeutics, Inc. (NASDAQ:SGMO) Sees Unusual Trading Volume in Its Shares
Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The sales growth rate helps investors determine how strong the overall growth-orientation is for a stock or portfolio.

05 September 2017
CVR Energy Inc. (CVI) Upgraded to Sell at BidaskClub
It worsened, as 12 investors sold AEGN shares while 50 reduced holdings. 28 funds opened positions while 72 raised stakes. Spark Investment Management LLC expanded its investment by buying 176,800 shares an increase of 255.9% as of 06/30/2017.

05 September 2017
RSI Alert: Dick's Sporting Goods, Inc. (DKS) Now Oversold
The company's shares were given away at $47.47 per share worth to an income of some $15,823,840 on account of Stack Edward W. Aetna Inc. (NYSE:AET) for the trailing twelve months paying dividend with the payout ratio of 0.00% to its shareholders.

05 September 2017
Scotland drops two places in British prosperity rankings
GDP per capita in London grew by 1.6 per cent, compared with three per cent in the north west and 2.8 per cent in the north east.

05 September 2017
Yahoo Inc (NASDAQ:AABA) Sentiment Worsened, Despite
The investment professionals in our partner's database now hold: 663.52 million shares, up from 630.97 million shares in 2016Q3. It is positive, as 66 investors sold MRK shares while 603 reduced holdings. 128 funds opened positions while 609 raised stakes.

05 September 2017
Rockies' Chatwood back as starter against Giants
Bettis didn't face a batter with a runner in scoring position until Span led off the sixth with a double to left field. Blackmon homered in the third inning, then added a base hit to follow Bettis in the fourth to keep the inning alive.

04 September 2017
Tremor detected in North Korea may indicate another nuclear test
And they have, in China, Russia, North Korea , they have always wanted us to stop our joint military exercises with South Korea . But the distance that this missile traveled may be cause for concern for some who don't take the North Korean threat seriously.

04 September 2017
North Korean ambassador summoned by the UK
Theresa May inspected an honour guard with the Japanese defence minister Itsunori Onodera on board a helicopter carrier in Japan. Mrs May has been joined by a delegation of United Kingdom business leaders, along with International Trade Secretary Liam Fox.

04 September 2017
White House: Donald Trump Personally Pledging $1 Million To Help Hurricane Victims
Trump has not decided which organization he will donate to, but the funds will go to parts of Texas and parts of Louisiana. Trump began the week pledging to secure funding for relief efforts "very, very quickly" and visited the region on Tuesday.

04 September 2017
North Korea says it has loaded H-bomb onto ICBM
The tremors caused by North Korea's Sunday test were at least 10 times more powerful than the fifth test, Japanese officials said. Tensions between North Korea and the global community flared again last week after Pyongyang flew a missile over Japan.



Recommended