Supreme Court refused to lift the stay on initiating proceedings against Jaypee Infratech and its parent Jaiprakash Associates under the consumer and housing laws until the NCLT insolvency proceedings are finished.
400 homebuyers moved to the Supreme court asking permission for action under the Real Estate (Regulation and Development) RERA and the Consumer Protection Act. The apex court said that it will hear their petition in the insolvency case hearing.
Insolvency and Bankruptcy Code proceedings were initiated against builder on a plea filed by IDBI Bank Ltd. in NCLT. Once a case is admitted under IBC law, then all the other proceedings are stayed till the insolvency resolution professional (IRP) comes up with a resolution.
The fresh case aroused even after Supreme Court is already hearing petition filed by another set of homebuyers who want their interests protected.
The Apex court last week directed the insolvency resolution professional IRP, Anuj Jain to take over Jaypee Infratech’s management and asked Jaiprakash Associates to submit a sum of Rs 2,000 crore. It asked the IRP to keep in mind the interests of homebuyers and come up with an interim resolution plan within next 45 days, as compared to 270 days allowed under the Insolvency and bankruptcy code.