A day after the Supreme Court put on hold insolvency proceedings against Jaypee Infratech Ltd, the debt-ridden realty firm’s financier, IDBI Bank, asked the top court to restore the case, Mint reported. “By staying the insolvency process, the court gave the company back to its promoters,” the bank told the Supreme Court on Tuesday.
On Monday, the Supreme Court stayed an order of the National Company Law Tribunal’s Allahabad bench, which had initiated the insolvency proceedings against Jaypee Infratech on August 9. The liquidation proceedings were initiated under the Insolvency and Bankruptcy Code of India, 2016, as the firm defaulted on a Rs 526.11-crore loan from IDBI Bank.
The Supreme Court order came on a Public Interest Litigation by homebuyers, who had asked the court to protect the interests of the 30,000 people who had invested in 27 of Jaypee’s projects. The petitioners said they were unsecured creditors and will get nothing out of the insolvency proceedings as dues of financial institutions will be cleared first.
The matter will be heard next on September 11.