Insolvency case: SC directs NCLT-appointed IRP to take over Jaypee's management

The Supreme Court on 11 September directed National Company Law Tribunal (NCLT)-appointed Interim Resolution Professional (IRP) to take over Jaypee associates' management to work out a plan to protect the interests of homebuyers and creditors and also asked the real estate firm to deposit Rs. 2,000 crores by October 27 with its registry.

The apex court also restrained the Managing Director and Directors of Jaypee Infratech from travelling abroad without its prior permission.

A bench of Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud asked the IRP to submit a resolution plan within 45 days to the court, which shall indicate the protection of interests of homebuyers and the creditors.

The Supreme Court also assured the buyers that their matter will be heard on November 13.

The Allahabad bench of the NCLT on August 9 classified Jaypee Infratech as insolvent on the petition filed by the IDBI Bank under Section 7 of Insolvency and Bankruptcy Code 2016.

The IDBI filed an insolvency plea in the tribunal after Jaypee Infratech defaulted on a loan of around Rs. 8,500 crores. Although the company had claimed that it held adequate assets to repay the loan, the IDBI went ahead and filed the plea.

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 the NCLT declares the company insolvent and begins proceedings. 

-ANI