Business India

IDBI seeks vacation of stay of insolvency proceedings against Jaypee

IDBI seeks vacation of stay of insolvency proceedings against Jaypee

The Supreme Court will hear on September 11, the IDBI’s plea seeking restoration of insolvency proceedings against the Jaypee Infratech that was put on hold a day ago by the top court on the plea of flat buyers who fall in the category of unsecured creditors.

A bench of Chief Justice Dipak Misra, Justice A.M. Khanwilkar and Justice D.Y. Chandrachud on Tuesday agreed to hear the matter as the IDBI told the court that its September 4 order had put the control of the company back with its promoters.

Seeking an urgent hearing, IDBI counsel Abhishek Manu Singhvi told the court that the stay of the National Company Law Tribunal (NCLT) order has benefited the defaulting company more than the flat buyers.

However, the IDBI’s plea was opposed by the flat buyers who contended that the September 4 order has benefited Jaypee Infratech and its reversal would only benefit the bank.

The NCLT’s Allahabad bench had by its August 9 order on the bank’s plea appointed an insolvency resolution professional to start proceedings to recover the bank’s Rs 526 crore from Jaypee Infratech as it had defaulted on the repayment.

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