In a big relief for Jaypee homebuyers, the Supreme Court has stayed the National Company Law Tribunal (NCLT) proceedings against the builder.
The NCLT had, while acting on an insolvency plea, filed by Jaypee Infratech Limited stayed all pending proceedings before all judicial and quasi-judicial bodies leaving aggrieved homebuyers with no legal remedies, buyers had alleged earlier.
The NCLT asked these buyers to instead file claim forms as creditors under the Bankruptcy Code.
When a company is declared insolvent and is wound up, secured creditors such as banks will get first preference in repayments from any amount recovered from sale of assets. Homebuyers would be treated as unsecured creditors.
Buyers said that if the …
Read the full article at: http://economictimes.indiatimes.com/wealth/real-estate/big-relief-for-jaypee-homebuyers-sc-stays-nclt-proceeding-against-builder/articleshow/60359308.cms
