Jaypee Real Estate Case: SC Directs Non-Institutional Directors to Appear



November 15, 2017


The Supreme Court on Monday has directed the non-institutional directors of Jaypee Infratech Ltd. (Jaypee) to appear in person before the Court next week and furnish the details of personal assets. This direction of Supreme Court comes in response to failure of Jaypee to deposit an amount of Rs. 2000 Crore with the Court’s Registry by October 27.

Here it would be relevant to mention that Allahabad Bench of NCLT on August 9th had declared Jaypee Infratech as insolvent and had accepted the plea of IDBI Bank to commence insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 against Jaypee Infratech. However, later the Supreme Court had put a hold on NCLT’s insolvency proceedings in a PIL lodged by 32,000 homebuyers of Jaypee with the Supreme Court to put a hold on the impugned order of NCLT. Thereafter, the Supreme had directed Jaypee to deposit Rs.2000 Crore with the Court’s Registry.

Three-Judge Bench of the Supreme Court headed by Chief Justice Dipak Misra taking note of Jaypee’s inability to pay the stipulated amount has now directed its non-institutional directors to appear before the Court and has also appointed amicus curiae to set up an online portal to look into the grievances of home buyers of insolvent Jaypee’s Wish Town Project.