Jaypee Infratech homebuyers get relief; SC puts NCLT proceedings on hold

Key Highlights: 

• 32,000 buyers filed petition before SC against NCLT's order for Jaypee Infratech
• Jaypee Infratech share price surges after SC puts hold on NCLT's orders
• Jaypee Infratech was among the 12 defaulters identified by the RBI

After hearing the plea of 32,000 home buyers, the Supreme Court on Monday put on hold the National Company Law Tribunal's (NCLT) for insolvency proceedings against Jaypee Infratech.

Last month, Jaypee Infratech homebuyers filed a public interest litigation (PIL) seeking relief from the Sc against the order passed by the National Company Law Tribunal (NCLT) on August 09, 2017.

This is a relief sign for the Jaypee Infratech buyers who knocked the door of SC seeking stay on NCLT's orders. However, this is the start of the information the entire verdict of SC is yet to come – there will be detailed information on what the court has said about Jaypee's insolvency proceedings.

Jaypee Infra Insolvency: SC stays insolvency proceedings in NCLT #jaypeehomebuyers pic.twitter.com/7NlbyDoE0E

— Zee Business (@ZeeBusiness) September 4, 2017

Nearly 32,000 people are affected by the NCLT order as they worry their savings given to the builder for their homes will go waste if NCLT declares the company insolvent and begins proceedings.

Reason behind  home buyers panic, was when the IRP stated that it has made no statement or commitment to any authorities or media representatives suggesting that refund can be made to certain categories of flat buyers/projects. 

On August 09, the Allahabad bench of the National Company Law Tribunal (NCLT) admitted plea of IDBI Bank to begin insolvency proceedings against Jaypee Infratech for defaulting on a loan of Rs 526.11 crore. The bench also appointed Anuj Jain as the Interim Resolution Professional (IRP) to carry out the proceedings under the Insolvency and Bankruptcy Code.

Jain has been given six-months time period to submit a plan for revival of Jaypee Infratech's. The plan for resolution of the company will be submitted before NCLT for approval.

NCLT has asked home buyers who have purchased flats from Jaypee Infratech to file for their claims by August 24, 2017 for refund of their money in case revival of the company fails.

Jaypee Infratech is among the 12 defaulters identified by the Reserve Bank of India (RBI) on June 13, 2017 for Insolvency & Bankruptcy code (IBC).

Share price of Jaypee Infratech surged by nearly 4% on BSE, trading at Rs 18.30 per piece.

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