The Supreme Court Monday gave control of the management of the beleaguered Jaypee Infratech Ltd (JIL), which is facing lawsuits by home buyers over alleged non-allotment of flats, to the Interim Resolution Professional (IRP) appointed by the National Company Law Tribunal (NCLT).
“The IRP shall forthwith take over the Management of JIL. The IRP shall formulate and submit an Interim Resolution Plan within 45 days before this court. The Interim Resolution Plan shall make all necessary provisions to protect the interests of the home buyers”, a three-judge bench headed by Chief Justice Dipak Misra said, modifying the court’s order of September 4 wherein it had stayed the insolvency proceedings initiated by NCLT.
The court also restrained the managing director of JIL and Jayaprakash Associates Ltd (JAL) from leaving the country without its prior sanction. “Any person who was a director or managing director of JIL or JAL on the date of the institution of the insolvency proceedings against JIL as well as the present directors/managing director shall also not leave the country without prior permission of this court,” it said.
JAL should also deposit Rs 2,000 crore with the SC Registry by October 27 so that home buyers can be refunded from this amount, it said.
The bench, which also included Justice A M Khanwilkar and Justice D Y Chandrachud, allowed Jaypee Associates to raise Rs 2,000 crore by selling land or properties after obtaining prior permission of the court. The court was hearing an application filed by IDBI bank seeking vacation or modification of the September 4 order. “We are not concerned about the interest of company. We are only concerned about the home buyers, who are mostly of lower- and middle-class strata. Home buyer needs to be protected. It’s our duty and they should either get the money back or the flat,” the CJI said.
Advocate General K Venugopal, who appeared for the Centre, requested that the stay be vacated or modified “because the consequence of the stay would be that the Management of Jaypee Infratech Ltd. would stand restored”.