Expand
O.P. Jindal Global University
 
Home / Latest News / SC asks Jaypee Group to deposit Rs 1,000 crore by June 15 or be ready for consequences

SC asks Jaypee Group to deposit Rs 1,000 crore by June 15 or be ready for consequences

May 16, 2018;

Bench added that in case of default in depositing the money by June 15, “the statutory proceedings against JIL shall proceed.

Real Estate Reality
Real Estate Reality       pic by times

The Supreme Court today directed realty firm Jaiprakash Associates Limited (JAL) to deposit Rs 1,000 crore, in addition to Rs 750 crore already deposited, by June 15 to provide refunds to the hassled home buyers.

On submission of the amount, the liquidation proceedings against Jaypee Infratech Limited (JIL), a subsidiary of holding company JAL, shall remain stayed, the top court said.

The direction came from a bench headed by Chief Justice Dipak Misra when lawyer Anupam Lal Das, counsel for the JAL, said that holding firm JAL be allowed to revive its crisis-hit subsidiary JIL as its liquidation would neither be in the interest of creditors, nor in the interest of home buyers.

The bench, which also comprised Justices A M Khanwilkar and D Y Chandrachud, directed that in case of default in depositing the money by June 15, “the statutory proceedings against JIL shall proceed”.

It then asked lawyer Pawan Shree Agrawal, who is assisting the court as an amicus curiae, to disburse money to the home buyers who wanted refund on a “pro-rata” basis.

Senior advocate C A Sundaram, representing a financial institution (FI), said most home buyers have taken loans from banks and hence, it should be ensured that they pay refunded money to the banks only.

The court asked the banks, who have granted loans to home buyers of JIL, to send their representatives to discuss this aspect with the amicus to ensure that the disbursed amount goes to the FIs.

At the outset, the counsel for JAL apprised the court about the present status of the insolvency proceedings against JIL and submitted that the holding firm’s resolution to revive the subsidiary was needed to be considered by the committee of creditors (COC).

“We have proposed the best revival plan and the liquidation of JIL is neither in the interest of creditors, nor in the interest of home buyers,” he said.

The firm has proposed to offer 2,000 equity shares of JIL to each home buyer as part of its Rs 10,000-crore proposal to revive it, Das said.

The lawyer said the company has been delivering possession of 500 dwelling units every months to home buyers and moreover, 92 per cent home buyers wanted possession of their homes.

“Please ask the Committee of Creditors to decide whether my (JAL’s) resolution plea for revival of the company (JIL) worth considering or not,” he said.

Senior advocate Ajit Sinha, appearing for home buyers including one Chitra Sharma, said the court had directed the real estate firm to deposit Rs 2,000 crore and only Rs 750 crore has been deposited and hence, it was a case of non-compliance of the order.

The company, in its plea, had sought a direction for restraining the National Company Law Tribunal (NLCT) at Allahabad from proceeding further with the insolvency proceedings.

It had also said that the handing over of the company to the “sole resolution applicant” will result in compromising the interests of home buyers, minority shareholders, employees and even the financial creditors of the company.

The apex court had on January 10 directed JAL, the holding firm of Jaypee Infratech Ltd (JIL), to provide details of its housing projects in the country, saying the home buyers should either get their houses or their money back.

The home buyers had moved the apex court, stating that around 32,000 people had booked flats and were now paying installments.

The plea had also stated that hundreds of home buyers were left in the lurch after the NCLT, on August 10 last year, admitted the IDBI Bank’s plea to initiate insolvency proceedings against the debt-ridden realty firm for allegedly defaulting on a Rs 526-crore loan.

Source PTI

Read Laws @ LatestLaws.com-

Companies Act,2013

National Company Law Tribunal Rules, 2016

National Company Law Tribunal (Procedure for Reduction of Share Capital of Company) Rules, 2016

Related News @ LatestLaws.com-

11.9.2017 – SC asks Jaypee Infratech to deposit Rs. 2000 crore by 27th October, Directors restrained from leaving India

4.9.2017 – Supreme Court stays Insolvency Proceedings in NCLT against Real Estate giant Jaypee

 

Facebook Comments

Hindu

Pic by Hindu Women Empowerment and Sports Women Empowerment and Sports Missing the Point Missing the Point pic by english blog Delivery Boy Delivery Boy                    by Satish Acheche DIn Acheche Din     pic by sify

Hindu Hindu

Job Hazards

...as an eminent lawyer you ought to know that your action tantamount to, under Section B, sub-section G.VIX, read along with I.P.C. (A) XI (B), notwithstanding...                                        TOI

TOI

Time to straighten up Time to straighten up                pic by TOI Tax Reforms    by Hindu Tax Reforms by Hindu Lawyers Bearing the Burden Literally Lawyers Bearing the Burden Literally pic by OMG TOI

Hindu

Hindu Let Justice Be Let Justice Be Alligator vs Litigator Alligator vs Litigator

TOI

Hindu Hindu

TOI

Belts are for Dogs Belts are for Dogs

TOI

Hindu Hindu Hindu Demonitisation Diaries 2 Demonitisation Diaries 2  pic by sify Auto Driver thrashed for no fault Auto Driver thrashed for no fault,                  source oneindia Hindu Demonitisation Diaries Demonitisation Diaries                                                       by sify Four Pillars of Democracy Four Pillars of Democracy             by Satish ALL_1_Theme_01A_24_2383617g

Hindu

TOI

Hindu

Hindu Hindu Soaring of Oil Prices pic by indiaone Hindu

pinterest

If India takes One Step, we will take Two by Satish If India takes One Step, we will take Two ...................by Satish America First Walk Your own Talk Cartoon

TOI

State of Two Nations State of Two Nations               pic by sandeep

Hindu

State of Affairs Women Safety: State of Affairs             pic by mangal

Hindu

TOI

Hindu

TOI

TOI

Humour @ Latest Laws Achhey Din Humour @ Latest Laws: Achhey Din Hindu TOI

TOI

Hindu

Hindu

Hindu 150425_-_farmers_a_2384764f

Hindu

Demonitisation Diaries 1 Demonitisation Diaries 1                                  pic by sify  

IBN IBN

TOI

TOI

TOI

 
 
 

Check Also

Rape Survivor

A Dehradun school allegedly told a girl’s parents that it ‘can’t admit rape survivor’

October 18, 2018: A private school in Dehradun allegedly denied admission to a 16-year-old girl because she was gang-raped in a boarding school recently. The rape survivor’s Lawyer has demanded cancellation of the school’s CBSE affiliation. Advocate Aruna Negi Chauhan ...

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest laws

Join our mailing list to receive the latest laws news and updates from our team.