September 4,2017:

After stay Apex Court Bench posted a batch of matters for hearing on October 10,2017.

Supreme Court has stayed insolvency proceedings against the real estate firm Jaypee Infratech at the National Company Law Tribunal (NCLT), Allahabad at instance of its financier IDBI.

It has also issued the notice to the embattled firm and others on a plea filed by home buyers who have not yet received possession of their dream flats booked with the company.

SC Bench comprising of the CJI Dipak Misra and Justice A M Khanwilkar and Justice D Y Chandrachud.

Apex Court Bench  has sought the response of the real estate company, RBI and others on the PIL filed by Mr. Chitra Sharma and the other home buyers alleging that they have not received flats and insolvency proceedings initiated against Company will render them without any remedy.

PIL further submits that,"The Home buyers, being unsecured creditors, will get nothing out of Insolvency Proceedings as dues of financial institutions, who are the secured creditors, would be cleared first.

Petition was moved in Apex Court seeking protection of interests of over 30,000 buyers who invested hard earned money to book their dream homes in the 27 different projects of the debt-ridden realty firm Jaypee Infratech.

Flat buyers, under the Insolvency and Bankruptcy Code of 2016, do not fall under category of the Secured Creditors like the banks and hence they may get back their money only if something is left after repaying the secured and the operational creditors.

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Insolvency and Bankruptcy Code of 2016,

 

Source PTI

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