The Supreme Court has adjourned insolvency proceedings against the Jaypee Infratech and allegedly gave time to other home buyers to join the petition.
It was learnt that the Jaypee group moved to the Supreme Court seeking relief against the order passed by the National Company Law Tribunal (NCLT).
As per the sources, “The Jaypee case was heard just before lunch by the bench of Hon’ble Mr. Justice Khehar and Mr. Justice Chandrachud. The judges were very unhappy with the writ petition, which was very shoddily drafted. The bench pointed out that the constitutionality of Insolvency Act had not been challenged and even the order of NCLT had not been challenged. The arguments raised by Mr. Sinha Senior Advocate were quite flimsy and he could not answer any questions raised by the judges”.
The Jaypee Infratech group which is considered as one of the largest builders in the country was declared as bankrupt by the National Company Law Tribunal (NCLT).
“The judges very upset by the poor assistance given by the Senior Counsel were throwing the file to dismiss the case – such dismissal would have spelled curtains for all Jaypee allottee. Very fortunately, there were a large number of other advocates for other Jaypee allottees who immediately got up when the judges were throwing the case and these lawyers requested the judges not to dismiss and said that they would be filing the writ petition challenging the constitutional validity of the Insolvency Act”, said the sources.
It has come to notice that the total of 32,000 people is affected through this.
It was further added, “A young advocate also explained how Jaypee was siphoning of funds. Another young advocate pointed out that RERA was being defeated by the Insolvency Act. The judges understood that their decision would have wide ramification and merely adjourned the case for one week to allow fresh petitions to be filed”.
It was reported that IDBI filed an insolvency plea under Section 7 of Insolvency and Bankruptcy Code 2016 after Jaypee group defaulted the loan amount of around of around Rs. 8,500 crores.
The next hearing is scheduled for September 4, official said.