Liquidation of Jaypee group firm would serve no purpose: SC
Liquidation of real estate firm Jaypee Infratech Ltd (JIL) would not “serve” the purpose of either home buyers, financial institutions or the promoters, the Supreme Court on Thursday said.
The apex court also reserved its order on “interim reliefs” prayed by various stakeholders including the home buyers of JIL, Jaiprakash Associates Limited (JAL) which is the holding company of JIL, banks and financial institutions and the Insolvency Resolution Professional (IRP).
“The Committee of Creditors has rejected the proposal. The liquidation (of JIL) will not serve anybody’s purpose,” a bench headed by Chief Justice Dipak Misra said when senior advocate F S Nariman, appearing for real estate firm JAL, listed out the legal options left to revive the firm.
The bench, also comprising justices A M Khanwilkar and D Y Chandrachud, was told by Nariman that in the interest of justice, “an independent person or persons may be appointed to evaluate financial capability of JAL/JIL to continue executing the ongoing existing projects, should be accepted and then if it is stated by an expert body that JAL/JIL do not have the financial capability, consider what future steps to be taken”.