SC directs Allahabad NCLT to deal with insolvency proceedings against the Jaypee group

By Accommodation Times Bureau


The Jaypee group suffered a major setback in Supreme court. The Supreme court bench headed by CJI Deepak Mishra set a limitation period of 180 days on August 9, 2018, to conclude the insolvency proceedings against the Jaypee Infratech Limited. The bench which also comprised justices AM Khanwilkar and DY Chandrachud, said, “The Rs.750 crore deposited by JIL in the Supreme court  shall be transferred to National Company Law Tribunal, Allahabad, which would deal with the proceedings.”

The apex court also allowed RBI, to direct the banks to start separate insolvency proceedings against JIL’s holding company, Jaiprakash Associate Limited. The bench asked to include home buyers in a committee of creditors according to the amendments made in the Insolvency and Bankruptcy Code.

Lawyers who represented the homebuyers opposed the submission that JAL be allowed to complete the housing projects. They said that it was barred under the law to do so. The bench, taking note of the situation said, “ It was thought that liability of the firm was to tune Rs 2000 crores and it has gone beyond Rs 30000 crores.

JAL earlier said, “Rs 750 crores have been deposited by us with the honourable supreme court’s registry and Rs 600 crores more will be required, for paying the principal amount to the homebuyers.

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