Did the Supreme Court do the right thing by staying the insolvency proceedings against Jaypee Infratech in a petition filed by home buyers who have preferred claims against the company?
The answer is no and yes. The whole point of legislating an Insolvency and Bankruptcy Code is to speed up the process of resolving bad debts, where creditors can seek to recover the assets that are still salvageable, and distribute the net proceeds among themselves, workers, and unsecured creditors. If the courts start intervening at the drop of a hat which means months of proceedings at the National Company Law Tribunal (NCLT) will now face interruptions by courts the 180-day deadline for resolving dues will in…
Read the full article at: https://swarajyamag.com/economy/should-sc-have-stayed-insolvency-case-against-jaypee-answer-is-no—and-yes
