IDBI Bank says Jaypee Infratech has gone back to defaulting promoters; moves Supreme Court to restore insolvency
IDBI Bank, the largest creditor of Jaypee Infratech Ltd and the leader of the consortium of lenders to the Jaypee Group, moved Supreme Court on Tuesday to restore the insolvency proceedings against the real estate company a day after SC stayed the National Company Law Tribunal (NCLT) order.
- Sep 5, 2017,
- Updated Sep 5, 2017 4:16 PM IST
IDBI Bank, the largest creditor of Jaypee Infratech Ltd and the leader of the consortium of lenders to the Jaypee Group, moved Supreme Court on Tuesday to restore the insolvency proceedings against the real estate company a day after SC stayed the National Company Law Tribunal (NCLT) order passed by its Allahabad Bench in August which had declared Jaypee Infratech as insolvent.
A bench headed by Chief Justice of India (CJI) Dipak Misra and Justices Amitava Roy and A M Khanwilkar took into account the submission of IDBI Bank. IDBI Bank contended that the stay of the NCLT order passed by its Allahabad Bench had reversed the position and the company had gone back to defaulting promoters.
National Company Law Tribunal (NCLT) had in August initiated insolvency proceedings against Jaypee Infratech, a subsidiary of Jaypee Group which is yet to deliver flats to around 32,000 homebuyers.
With Supreme Court stepping in before the resolution process takes off, homebuyers may have to wait a little longer until buyers are categorized as secured claimants under the Insolvency and Bankruptcy Code (IBC). The IBC code allows proceeds from the liquidation of assets to distributed to secured lenders first.
NCLT had appointed a chartered accountant Anuj Jain who was asked to prepare a resolution plan and submit it to NCLT. The plan will then have to be approved by 75 per cent financial creditors (by value) in the committee.
Jaypee Infratech, a subsidiary of Jaiprakash Associates, was declared insolvent in August. Jaypee Infratech Ltd was among the 12 accounts identified by RBI for insolvency proceedings last month.
Earlier there was confusion on whether homebuyers had to submit claim form for financial creditors or operational creditors. Homebuyers in Jaypee Infratech projects were asked to submit claim forms to interim resolution professional (IRP) by 31 August.
IDBI Bank, the largest creditor of Jaypee Infratech Ltd and the leader of the consortium of lenders to the Jaypee Group, moved Supreme Court on Tuesday to restore the insolvency proceedings against the real estate company a day after SC stayed the National Company Law Tribunal (NCLT) order passed by its Allahabad Bench in August which had declared Jaypee Infratech as insolvent.
A bench headed by Chief Justice of India (CJI) Dipak Misra and Justices Amitava Roy and A M Khanwilkar took into account the submission of IDBI Bank. IDBI Bank contended that the stay of the NCLT order passed by its Allahabad Bench had reversed the position and the company had gone back to defaulting promoters.
National Company Law Tribunal (NCLT) had in August initiated insolvency proceedings against Jaypee Infratech, a subsidiary of Jaypee Group which is yet to deliver flats to around 32,000 homebuyers.
With Supreme Court stepping in before the resolution process takes off, homebuyers may have to wait a little longer until buyers are categorized as secured claimants under the Insolvency and Bankruptcy Code (IBC). The IBC code allows proceeds from the liquidation of assets to distributed to secured lenders first.
NCLT had appointed a chartered accountant Anuj Jain who was asked to prepare a resolution plan and submit it to NCLT. The plan will then have to be approved by 75 per cent financial creditors (by value) in the committee.
Jaypee Infratech, a subsidiary of Jaiprakash Associates, was declared insolvent in August. Jaypee Infratech Ltd was among the 12 accounts identified by RBI for insolvency proceedings last month.
Earlier there was confusion on whether homebuyers had to submit claim form for financial creditors or operational creditors. Homebuyers in Jaypee Infratech projects were asked to submit claim forms to interim resolution professional (IRP) by 31 August.