Supreme Court refuses to halt bidding process for Jaypee Infratech
, ET Bureau|
Feb 05, 2018, 11.34 PM IST
NEW DELHI: The Supreme Court on Monday refused to stay the bidding process for Jaypee Infratech, initiated by the insolvency resolution professional (IRP) in charge of resolving the developer's financial mess.
IDBI Bank in August last year moved the National Company Law Tribunal to commence proceedings against Jaypee Infratech under the Insolvency and Bankruptcy Code.
Monday was the last day to submit bids for Jaypee Infratech. The IRP received at least 18 expressions of interest to buy the company in full or in part, said a person with knowledge of the matter.
The top court had initially stayed the insolvency resolution proceedings at the request of the homebuyers in the company's projects. They had claimed that their interests would be jeopardised as they were unsecured creditors.
Secured creditors such as banks get first preference in insolvency proceedings. Their dues are settled first. The consumers had approached the top court against this.
The IRP, Anuj Jain, has since assured homebuyers that their interests would be taken care of.
The court had in the first reaction stayed the proceedings only to let the IRP to continue with the task with a rider — that the interests of the home-buyers would be taken care as well. "The bidding process will continue," a three-judge bench led by CJI Dipak Misra said on Monday.
IDBI Bank in August last year moved the National Company Law Tribunal to commence proceedings against Jaypee Infratech under the Insolvency and Bankruptcy Code.
Monday was the last day to submit bids for Jaypee Infratech. The IRP received at least 18 expressions of interest to buy the company in full or in part, said a person with knowledge of the matter.
The top court had initially stayed the insolvency resolution proceedings at the request of the homebuyers in the company's projects. They had claimed that their interests would be jeopardised as they were unsecured creditors.
Secured creditors such as banks get first preference in insolvency proceedings. Their dues are settled first. The consumers had approached the top court against this.
The IRP, Anuj Jain, has since assured homebuyers that their interests would be taken care of.
The court had in the first reaction stayed the proceedings only to let the IRP to continue with the task with a rider — that the interests of the home-buyers would be taken care as well. "The bidding process will continue," a three-judge bench led by CJI Dipak Misra said on Monday.
