IDBI Bank has moved the Supreme Court seeking the restoration of insolvency proceedings against Jaypee Infratech.
IDBI is the largest creditor to the real estate company. The apex court had on Monday stayed the National Company Law Tribunal (NCLT) order declaring Jaypee Infratech insolvent.
The bank said the apex court’s decision had reversed the insolvent position and that the company had gone back to defaulting promoters. The insolvency proceedings began even as Jaypee Infratech, a subsidiary of the Jaypee Group, is to deliver flats to around 32,000 homebuyers.
The NCLT had earlier approved liquidation proceedings against Jaypee Infratech under the Insolvency and Bankruptcy Code of India (IBC), 2016.