The Supreme Court today agreed to hear tomorrow a plea of several aggrieved flat-buyers who had booked their dream home in several projects of Jaypee Infratech, against whom insolvency proceedings have started.
A bench comprising Chief Justice JS Khehar and Justice DY Chandrachud said it will hear the plea of flat-buyers who alleged that they will neither get a home nor a refund of their hard earned money on account of being “unsecured creditors".
“Around 32,000 buyers have booked their homes in 27 different housing projects of Jaypee Infratech and they are left in the lurch as the insolvency proceedings have been started against it,” senior advocate Ajit Sinha, appearing for 24flat—buyers, said.
He said the financial interest of secured creditors will be safeguarded first in the insolvency proceedings and flat buyers, being unsecured creditors, would virtually get nothing.
Referring to the provisions of the new Insolvency and Bankruptcy Code (new insolvency law), Sinha said the decrees and orders passed by the consumer courts and civil courts in favour of home buyers cannot be executed due to pendency of insolvency proceedings.
He urged that rights of the home buyers needed to be protected.
The plea was filed by a flat buyer Chitra Sharma and 23 others seeking protection of their rights as flat buyer.
Hundreds of home buyers have been left in the lurch after the National Company Law Tribunal (NCLT), on August 10, admitted the IDBI Bank’s plea for initiating insolvency proceedings against the debt—ridden realty company for defaulting on a Rs 526—crore loan.
Jaypee Infratech is into road construction and real estate business. It has constructed the Yamuna Expressway, connecting Delhi—Agra.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.