SC refuses to extend deadline to Jaypee Associates for depositing Rs 2000 cr

SC refuses to extend deadline to Jaypee Associates for depositing Rs 2000 cr
Oct 2017 , by , in Latest News

The Supreme Court on Monday refused to extend the deadline of October 27 given to Jaypee Associates (JAL), the holding company of distressed Jaypee Infratech, for depositing Rs. 2,000 crore with the apex bank. JAL had requested for an urgent hearing on October 13 for an extension of the 45-day period for depositing Rs 2000 crore but the Supreme Court disallowed it.

The Apex court disallowing the mentioning by JAL may also mean that the Supreme Court is not interested in modifying its September 11 order in any manner and that is a positive for homebuyers, say legal experts. The Supreme Court last month had assured that homebuyers’ interest would be protected and had ordered Jaiprakash Associates Ltd, the holding company of distressed Jaypee Infratech, to deposit Rs 2,000 crore in the apex court by October 27. It had ordered the MD and directors of Jaypee Infratech and JAL not to leave India without its permission.

Advocate Anupam Lal Das told the court that JIL’s assets were more than its liabilities and it was ready to give an undertaking that the interest of each and every homebuyer would be safeguarded. He added that if JAL was forced to deposit Rs 2,000 crore, it too would become insolvent, affecting a wide range of stakeholders and creating another problem in addition to that arising from insolvency proceedings being initiated against JIL.

A bench of Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud brushed aside Das’s repeated requests to list JAL’s application and give an opportunity to place facts relating to financial difficulties of the company before the SC. CJI Misra said, “We will hear you (JAL) on October 27. Your ambition to wriggle out of the liabilities towards homebuyers is mistaken. Give the money back to them, we will hear you. We will have to protect the interest of homebuyers. We are not going to modify the September 11 order (directing JAL to deposit Rs 2,000 crore by October 27). We are not going to list the application for hearing before October 27.”

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