HIGHLIGHTS
*The SC sent all the issues pending before it to the National Company Law Tribunal (NCLT) in Allahabad
*The SC further said the limitation period of 180 days for the NCLT to complete insolvency proceedings would commence from Thursday itself
*It added that interim resolution professionals, or IRP, would invite fresh bids for JIL
NEW DELHI: The Supreme Court (SC) on Thursday washed its hands off its earlier promise to return money to homebuyers in Jaypee Infratech Ltd (JIL) and, sent all the issues pending before it to the National Company Law Tribunal (NCLT) in Allahabad.
The SC further said the limitation period of 180 days for the NCLT to complete insolvency proceedings would commence from Thursday itself and that interim resolution professionals, or IRP, would invite fresh bids for JIL.
The apex court further said home buyers will be included in the 'committee of creditors' in the insolvency proceedings under amended Insolvency and Bankruptcy Code (IBC). It added that JIL, or holding company Jayprakash Associates Ltd, won''t be able to participate in fresh bids being invited by IRP.
On August 23 last year, the SC had agreed to hear a PIL filed by Chitra Sharma, on behalf of thousands of homebuyers in uncertain housing projects of JIL, challenging the NCLT proceedings initiated by an IDBI-led banking consortium under the Insolvency and Bankruptcy Code, 2016, under which homebuyers had no say in the liquidation process of a financially distressed company. However, a recent amendment to the IBC has allowed homebuyers to be part of the committee of creditors in the liquidation proceedings.
Last month, tired of delays in ensuring refunds to people who bought houses in projects of JIL, the Supreme Court refused to entertain holding company Jaiprakash Associates Ltd’s proposal to deposit Rs 600 crore subject to it being permitted to mortgage assets with banks.
The bench said, “We are not inclined to entertain the said proposal.” It went on to add, “When we took up the case, we did not know that this will be the magnitude of the situation. Let the matter be listed for hearing on July 16, exclusively for the purpose of considering the issue of rights of homebuyers and the capability of JAL and JIL to construct the project.”