In relief to over 30,000 homebuyers, SC stays Jaypee insolvency proceedings

NCLT's August 9 order had left the worried homebuyers' position ambiguous

The Supreme Court (SC) on Monday stayed the National Company Law Tribunal (NCLT) order initiating insolvency proceedings against Noida-based developer Jaypee Infratech. The decision came as a relief to over 30,000 homebuyers, whose position became tenuous after the August 9 NCLT order; despite having paid over 90 per cent of the price with delivery of flats long overdue, their status was unclear under the Insolvency and Bankruptcy Code (IBC).   

The order came in a writ petition filed by Chitra Sharma, a homebuyer, who had purchased a flat from the debt-ridden company.  The court has issued a notice to all