The Supreme Court on Monday revived insolvency proceedings against real estate major Jaypee Infratech and gave management control of the company to the Interim Resolution Professional (IRP), appointed by the National Company Law Tribunal, with immediate effect.
The apex court restrained the managing director and directors of the company from travelling abroad without its permission and asked its parent company, Jaypee Associates, to deposit ₹2,000 crore with the registry to safeguard the interests of the home buyers.
The top court asked Jaypee Infratech to hand over records to the IRP for the drafting of a resolution plan indicating protection of the interests of over 32,000 home buyers and creditors. It also stayed any other proceedings instituted against Jaypee Infratech for any purpose in any forum such as the consumer commission, as the IRP has been given control of the company’s management.
“We are not concerned about the interests of the company. We are only concerned about the home buyers, who are mostly of lower and middle-class strata. Home buyers need to be protected. It’s our duty and they should either get the money back or the flat,” a Bench including Chief Justice Dipak Misra said.
The Bench, which also comprised Justices AM Khanwilkar and DY Chandrachud, allowed Jaypee Associates to raise ₹2,000 crore by selling land or properties and depositing it in the apex court registry by October 27.
The court posted the matter for hearing on November 13.
The apex court also appointed senior advocate Shekhar Naphade as amicus curiae to assist the proceedings of the IRP, which will submit a resolution plan indicating how to safeguard the interests of home buyers and secured creditors.
Home buyers needs to be protected. It’s our duty and they should either get the money back or the flat,” a Bench of Chief Justice Dipak Misra said