Homebuyers in SC to stay Jaypee Infratech’s dissolution
Fearing liquidation proceedings as the insolvency resolution process for debt-ridden real estate giant Jaypee Infratech Ltd (JIL) could not be completed within the statutory lime period of 270 days, hundred of homebuyers approached the Supreme Court seeking to stop the dissolution process. The apex court had in August last year ordered commencement of insolvency proceedings afresh against JIL before the National Company Law Tribunal, Allahabad, and asked the interim resolution professional (IRP) to seek fresh bids from other companies to take over the realtor. Under the Insolvency and Bankruptcy Act, corporate insolvency resolution process must be completed within 270 days and in case of failure, liquidation starts. As the time limit of 270 days ended on May 6, the homebuyers rushed to SC through advocate Ashwarya Sinha to stay the liquidation process. Though the NCLT in Allahabad has posted the matter for May 21, providing some breathing space to investors and likely bidders, the uncertainty has forced homebuyers to move the Supreme Court seeking protection of their interests.
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