SC sends Jaypee Infratech insolvency case back to NCLT for fresh look

With this order, homebuyers will be regarded as as financial creditors; promoters of Jaypee Infratech are out of the race for the company

The Supreme Court on Thursday ordered that the insolvency case of Jaypee Infratech be returned to the National Company Law Tribunal (NCLT), and the entire process, including the bidding for the asset, be restarted.

This follows the amendment of the Insolvency and Bankruptcy Code (IBC), in June 2018, bringing homebuyers on a par with financial creditors. Though the amendments are not retrospectively applicable, in this case they will be according to the Supreme Court orders.

According to sources, homebuyers’ dues in the case are about Rs 99 billion; Jaypee owes bankers Rs 100 billion. Of the 35,000 units