SC sends Jaypee Infratech insolvency case back to NCLT for fresh look

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New Delhi, Aug 9: The apex court has ordered the Jaypee Infratech insolvency case to go back to the National Company Law Tribunal (NCLT). While stakeholders await the fine-print of the order, it has broadly been understood that the process will be restarted. As the case will start afresh, the resolution professional will have to consider homebuyers as financial creditors.
However, those close to the resolution professional say that since the groundwork for the case has already been done, it shouldn’t be a problem to find a resolution. With this order, promoters of Jaypee Infratech are out of the race for the company. As homebuyers are now financial creditors, there is scope for them to bargain between getting possession of their homes and getting their money back, say experts.
The Rs 7.5 billion that the court had collected from Jaypee Infratech promoters will also now be transferred to the NCLT. The case is being heard by the Allahabad bench of NCLT. The petition in the Supreme Court was filed by homebuyers who opposed the insolvency proceedings, fearing they would lose their investments. Before the amendment made to the insolvency and bankruptcy act, homebuyers did not have a say in the insolvency proceedings.
The highest bidder was by Lakshadweep, a joint venture between Suraksha Asset Reconstruction and Dosti Realty. But, the committee of creditors rejected the plan.