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Jaypee Homebuyers Oppose NCLAT Orders

Courtesy/By: Sharren | 18 Jul 2019

The petition has been filed by a group 1000 homebuyers alleging that the NCLAT order passed on July 2 was in violation of Insolvency and Bankruptcy Code (IBC). The petition filed by advocate M L Lahoty argued that while recording that the resolution plan submitted by NBCC was rejected by the CoC has sought to set aside such rejection and to further reopen such negotiations, usurping the powers/functions, of the NCLT, COC and Resolution Professional, especially when the statutory period for completion of CIRP as stipulated under IBC has expired. During voting, majority of CoC had rejected NBCC’s bid to acquire Jaypee Infratech and the NCLAT has erroneously usurped the functions/ powers of the resolution professional. The homebuyers also expressed reservations against allowing NBCC to complete the unfinished housing projects of Jaypee and pleaded the apex court to pass order for protection of homebuyers. They have approached the Supreme Court challenging the National Company Law Appellate Tribunal (NCLAT) order allowing NBCC and creditor bank to thrash out resolution plan to take over Jaypee Infratech. The Apex Court on July 11 assured homebuyers that it would intervene to protect the interests of Jaypee homebuyers if the resolution plan under insolvency proceedings failed.

Courtesy/By: Sharren | 18 Jul 2019