Supreme Court restrains JPM Infra from declaring bankruptcy

The Supreme Court issued a notice to the real estate firm, JP Infratech and others on the appeal of those who bought the house, which has not yet got possession of the flat. The Supreme Court also banned the proceedings of bankruptcies against the company in Allahabad's National Company La Tribunal.  It is worth mentioning that the National Company Law Tribunal, NCLT, accepted the loan settlement petition (Insolvency petition) against JP Infratech, a debt waivered by IDBI Bank. Allahabad bench of NCLT had accepted the petition of IDBI Bank under Section 7 of the Bankruptcy and Lending Refinement Code of Inability, 2016.  It said that after petition on behalf of the company, Allahabad bench of NCLT accepted the petition of IDBI Bank on August 9 and appointed interim solution professional.  A three-member bench of Chief Justice Deepak Mishra, Justice AM Khanvilkar and Justice Dhananjay Y Chandrachud issued notice to JP Infratech and others on the petition filed due to non-receipt of possession of the house even after booking the flat in this company. The bench has sought answers from the real estate company, the Reserve Bank of India and others on the public interest petition of Chitra Sharma and other house buyers. It has been said in the petition that they have not yet got possession of their own house and the proceedings for declaring the bankruptcies started against the company will leave them without any relief.

                                                             

It has been stated in the petition that the buyers of the houses will not get anything from bankruptcies because of the unsafe debtors, because the outstanding amount of financial institutions, which are the secured debtors, will be paid first.