Jaypee: Insolvency law adjusting face
Posted On : October 04, 2017
The interim order of the Supreme Court in the Jaypee Infratech matter is a welcome move in upholding the principles enshrined in IBC. The SC has restored the management of Jaypee Infratech to the IP and has directed the IP to submit an interim resolution plan which takes into account the interest of the homebuyers. By allowing continuation of moratorium, restoring management to IP, restricting the directors from travelling abroad and directing Jai Prakash Associates Ltd and to deposit Rs. 2000 Crore to court by 27th October, it has again emphasized the paradigm shift in law and approach towards defaulters. So much so that, the Supreme Court of India has directed, in the most controversial case, of Jaypee Infratech, directors of the company can not travel abroad without prior approval and to deposit Rs. 2000 Crore to court by 27th October. This all in the light of protecting the interest of Home buyers who are generally middle class households, and have invested their life time savings in a hope to have an abode. Even the Apex court went ahead and categorily said that it is not much concerned about the lenders and even IBBI took prompt action by introducing a Form F for submitting the claims as home buyers and further considering to send recommendation for amending the Code to safeguard the interest of home buyers. All these actions express the commitment of the Court towards the law and equity.