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Crucial SC hearing to decide fate of Jaypee home buyers tomorrow

Jaypee Infratech is into road construction and real estate business

Press Trust of India  |  New Delhi 

Jaypee home buyers plea
Tripods of television crew stand in front of the Indian Supreme Court building in New Delhi. Photo: Reuters

The Supreme Court agreed to hear on Thursday a plea of several aggrieved flat-buyers who had booked their dream home in several projects of Jaypee Infratech, against whom proceedings have started.

A bench comprising Chief Justice J S Khehar and Justice said it will hear the plea of flat-buyers who alleged that they will neither get a home nor a refund of their hard earned money on account of being "unsecured creditors".

"Around 32,000 buyers have booked their homes in 27 different housing projects of and they are left in the lurch as the proceedings have been started against it," senior advocate Ajit Sinha, appearing for 24flat-buyers, said.

He said the financial interest of secured creditors will be safeguarded first in the proceedings and flat buyers, being unsecured creditors, would virtually get nothing.

Referring to the provisions of the (new insolvency law), Sinha said the decrees and orders passed by the consumer courts and civil courts in favour of home buyers cannot be executed due to pendency of insolvency proceedings.

He urged that rights of the home buyers needed to be protected.

The plea was filed by a flat buyer Chitra Sharma and 23 others seeking protection of their rights as flat buyer.

Hundreds of home buyers have been left in the lurch after the Company Law Tribunal (NCLT), on August 10, admitted the IDBI Bank's plea for initiating insolvency proceedings against the debt-ridden realty company for defaulting on a Rs 526-crore loan.

is into road construction and real estate business. It has constructed the Yamuna Expressway, connecting Delhi-Agra.

First Published: Wed, August 23 2017. 12:24 IST