It is nothing short of very good news for troubled homebuyers of Jaypee group. The Supreme Court on Monday allowed them to intervene in the main matter in which several buyers have moved the court seeking relief in the issue. Flat buyers, under the Insolvency and Bankruptcy Code of 2016, do not fall under the category of secured creditors like banks. As per this norm, the buyers may get back their money only if something is left after repaying secured and operational creditors – lenders. These homebuyers in their plea had sought a direction to the government and others that this code “shall not curtail the legal statutory and vested rights of the flat owners/ buyers as consumers” defined under Consumer Protection Act, PTI reports.
In a big decision, the apex court bench of Chief Justice Dipak Misra, Justice AM Khanwilkar and DY Chandrachud allowed Jaypee Orchard Resident Welfare Society to withdraw its petition seeking relief from the firm and intervene in the main matter. Supreme Court has also restrained the managing director and directors of the company from travelling abroad without its permission. Jaypee’s parent company, Jaypee Associates, has also been asked to deposit Rs 2000 crore with the registry to safeguard the interest of the home buyers.
However, in wake of the matter, homebuyers filed a plea and said that they being unsecured creditors, would get nothing out of the insolvency proceedings. The main petition which was moved in the court sought to secure the interests of over 30,000 buyers who invested hard-earned money to book their dream homes in 27 different projects of debt-ridden realty firm Jaypee Infratech.