Group Of Jaypee Infratech Homebuyers Approach Supreme Court Challenging NCLAT Order On Resolution Plan

A group of Jaypee homebuyers has approached the Supreme Court challenging the National Company Law Appellate Tribunal (NCLAT) order.

Earlier, the NCLAT had passed an order on July 2, allowing NBCC (India) Limited and creditor banks to thrash out the resolution plan to take over Jaypee Infratech Ltd, though this proposal was rejected by a committee of creditors (CoC) including homebuyers.

A group of 1,000 Jaypee's homebuyers alleged that order passed on July 2, 2019, was in violation of the Insolvency and Bankruptcy Code (IBC) since a statutory period of 270 days to wrap up Corporate Insolvency Resolution Process had expired and the appellate tribunal had extended the deadline in violation of the law.

Incidentally, the NCLAT had directed representatives of banks, allottees and other stakeholders to appear before it on July 17, 2019, in to sort out differences on the NBCC attempt and consider how the bid could be further tweaked in order to benefit homebuyers.

Challenging the order, petitioners stated that the NCLAT has erroneously usurped the functions or powers of the resolution professional.

NCLAT has sought to call the representatives of the financial creditors, the resolution applicant, the resolution professional, the allottees and the fixed deposit holders to conduct such renegotiation of the resolution plan on July 17 though it had already been rejected once by the majority of the creditors after the expiry of the statutory period, petitioners alleged.

It has been extremely frustrating for over 48,000 homebuyers of Amrapali with regard to NBCC, since it refused to invest or arrange any funds for construction of housing projects due to which no further construction work is being carried out, petitioners stated.