New amendments to IBC will protect interest of homebuyers: Centre to SC

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New amendments to IBC will protect interest of homebuyers: Centre to SC

The Centre told this to a bench comprising justices A M Khanwilkar and Dinesh Maheshwari, hearing the homebuyers matter of Jaypee Infratech Ltd.

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The Cabinet on Wednesday cleared the amendments that seek to put in place a 330-day deadline for corporate resolution process, including litigation and other judicial processes, as well as make resolution plan binding on all stakeholders.

The government said the National Company Law Appellate Tribunal, which is seized of a matter related to the JIL homebuyers case, is scheduled to hear the issue on July 22.

Last week, the top court said it may use its plenary power under Article 142 of the Constitution to protect the interest of over 21,000 homebuyers in the JIL case, if their grievances are not addressed.

The counsel appearing for the homebuyers had said they apprehend that JIL may be sent for liquidation which could hamper their interest.

On August 9 last year, the apex court ordered re-commencement of the resolution process against JIL and barred the firm, its holding company and promoters from participating in fresh bidding process.

It said there was “no manner of doubt” that JAL and JIL lacked financial capacity and resources to complete unfinished housing projects in which over 21,000 homebuyers had not been given the possession of their flats till then.

As per the apex court’s direction, the 270 days for completion of CIRP have concluded on May 6, it has said.