The IDBI Bank Tuesday approached the Supreme Court seeking lifting of the stay granted by it on the insolvency proceedings against real estate firm Jaypee Infratech. A bench of Chief Justice Dipak Misra, Justice Amitava Roy and Justice A M Khanwilkar agreed to hear the matter after senior counsel Abhishek Manu Singhvi, who appeared for the bank, submitted that the amount over which insolvency proceedings were launched against the company was also public money. The apex court posted the IDBI’s plea for hearing on September 11.
“The bank’s money is also public money and we are seeking modification of the September 4 order,” Singhvi said, adding that the company had gone back to defaulting the promoters as a result of the SC staying the insolvency proceedings, ordered by the National Company Law Tribunal (NCLT), Allahabad.
Appearing for some of those who had booked homes in projects launched by Jaypee Infratech, senior counsel Ajit Sinha, however, opposed the bank’s plea, saying that they were satisfied with the SC order and that it need not be altered.
The apex court had on Monday stayed insolvency proceedings against the group, acting on a PIL filed by some home buyers, who said they were yet to get their homes or money.
Flat buyers, under the Insolvency and Bankruptcy Code of 2016, do not fall in the category of secured creditors like banks and, hence, in case of default, can get back their money only if something remains after repaying the secured and operational creditors, they had contended, requesting that flat owners and buyers also be declared secured creditors.