The Supreme Court on Monday stayed an order passed by the Allahabad bench of the National Company Law Tribunal (NCLT) on Jaypee Infratech. The Allahabad bench of the tribunal had accepted IDBI Bank’s plea and classified Jaypee Infratech as insolvent.
A bench headed by chief justice of India (CJI) Dipak Misra was hearing a public interest litigation (PIL) filed by a homebuyer Chitra Sharma, seeking stay on the NCLT order. The Supreme Court issued notices to the finance ministry, Jaypee Infra, Reserve Bank of India and the Uttar Pradesh government.
The plea said the homebuyers, being unsecured creditors, will get nothing out of the insolvency proceedings as the dues of financial institutions, which are secured creditors, would be cleared fi…
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