Homebuyers Deplore Supreme Court Order on Jaypee Infratech


Status as on: 26/03/21

The home owners are unhappy with the order of the Apex Court. One of the home buyers of Jaypee Wishtown have cited that Supreme Court is playing with the emotion of homebuyers.

More than 20,000 homebuyers in the bankrupt real estate developer Jaypee Infratech’s residential projects in Gautam Budh Nagar have expressed dissatisfaction with a Supreme Court order requiring Suraksha Realty and state-run NBCC (India) Ltd to submit amended or new resolution plans to take over the projects.

The Hon’ble Supreme Court had in August last year pass on to itself all appeals pending before the NCLAT against the NBCC plan to take over Jaypee Infratech and construct flats.

Jaypee Infratech’s committee of creditors (CoC) had on 18th December, 2019 selected NBCC to acquire the company with 97.36% of the votes. Suraksha Realty was the other contender. The NCLT approved NBCC’s plan to buy Jaypee Infratech in March 2020.

The homebuyers are unhappy with the Hon’ble SC order. “A year after we were given hope that NBCC will complete the project, we are back to square one. Many of us waited for a decade with the dual burden of EMI and rent, and this decision has extended our pain.”

Jaypee Infratech went into insolvency in August 2017.

SC Judgment:

The Hon’ble Supreme Court said that “Taking all the facts and circumstances into account and in keeping with the spirit and purport of the orders passed in the past, we are inclined to again exercise the powers under Article 142 of the Constitution of India and to enlarge the time for completion Corporate Insolvency Resolution Process (CIRP)”.

Disclaimer – The above article is based on the personal interpretation of the related orders and laws. The readers are expected to take expert opinion before relying upon the article. For more information, please contact us at rera@centrik.in

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