The Supreme Court Has Refused To Stay The Bidding Process Under Jaypee Infratech Ltd’s Resolution Process That Was Initiated To Raise Money For Completion Of The Developer’s Delayed Projects .

The Supreme Court has  declined to pass a stay order on the bidding process for assets of Jaypee Infratech Ltd., currently undergoing resolution under the Insolvency and Bankruptcy Code. The court was hearing an application filed in a public interest litigation by Delhi resident Chitra Sharma, who has booked a home in a Jaypee Infratech project.
“The bidding process will continue before the interim resolution professional (IRP),” said Chief Justice Dipak Misra.
Jaypee Infratech is among the 12 companies against whom the Reserve Bank of India (RBI), through its 13 June directive, had asked banks to file insolvency petitions.
Jaiprakash Associates Ltd (JAL), the parent company of Jaypee Infratech, told the court that it had deposited Rs550 crore against its total liability of Rs2,000 crore that it was required to furnish under a September order to protect the interest of home buyers.
Amicus curiae , Pawan Shree Agrawal also told the court that claims of approximately Rs1,150 crore had been received on the online portal where home buyers could submit their claims for refund or possession.
On 22 November, the court had restrained independent directors and promoters of JAL and their family members from transferring any personal assets or property without the court’s permission to safeguard home buyers’ interests. They will be held for criminal prosecution or contempt of court if found in violation of the order, the court held.
The case will be heard next on 12 February.