SC reserves order in Jaypee associates case

The Supreme Court on Thursday reserved its order on the interim arrangement with respect to possession and refund seekers in the Jaypee Associates Ltd (JAL) case, the parent company of Jaypee Infratech.

A three-judge bench of the apex court, headed by Chief Justice of India (CJI) Dipak Misra also comprising Justice A. M. Khanwilkar and DY Chandrachud reserved its order.

The top court earlier in the day heard petitions on a day-to-day basis and concluded the hearing from all sides.

The apex court had asked the lawyers appearing for home buyers to give a written submission and five minutes for arguments to each counsel.

No repetition of points or suggestions was allowed by the court since there were a number of counsels who desired to make submissions.

Counsels for homebuyers, Insolvency Board, Banks, IRP, Jaypee, Amicus and other stakeholders were duly heard.

The lawyers for home buyers, including Ajit Sinha and Aishwarya Sinha, extensively argued that an independent committee be set up which can assess the financial health and credibility of interested bidders who are expressed interest in taking over the project and complete construction in Jaypee projects.

It was also suggested that a retired Supreme Court judge supported by distinguished professional with financial background be allowed to participate in the meeting to highlight the cause of the homebuyers.

It was also contended that the new Committee of Creditors should now allow the participation of Homebuyers in view of the recent amendment in the Act.

Sinha further argued that the liquidation proceedings shouldn't happen as it will benefit no one and the Court is conscious of the implications.

Earlier in March, the apex court had ordered Jaypee Associates to deposit Rs 200 crore in two equal instalments before the top court registry.

The amount would make a part of Rs 2,000 crore, which the infrastructure company has to deposit with the top court's registry in order to refund the money of home buyers of Jaypee Infratech.

Jaypee Infratech is among the 12 companies against whom the Reserve Bank of India (RBI), through its 13 June directive, asked banks to file insolvency petitions.