Jaypee Infratech Resolution Plan and belated claims of Homebuyers: SC issues notice to Jaypee Infratech Ltd.

Supreme Court: In a civil appeal against an order of the National Company Law Appellate Tribunal (‘NCLAT’), whereby the present appellant’s application against denial of his right over the flat in ‘KOSMOS society’, to be developed by Corporate Debtor- Jaypee Infratech Ltd. (JIL), was dismissed, the Division Bench comprising of Sanjiv Khanna and Dipankar Datta, JJ. issued notice to JIL.

Background

The present appellant/ homebuyer booked a flat in the year 2009 in ‘KOSMOS society’, to be developed by Corporate Debtor- Jaypee Infratech Ltd. (JIL). The appellant had already paid almost entire consideration amount to JIL and also secured a housing loan from HDFC Bank and was waiting for possession of the said flat for more than 12 years and JIL has denied the appellant any claim over the said flat.

The JIL went into Corporate Insolvency Resolution Process (‘CIRP’) under Insolvency and Bankruptcy Code, 2016 (‘IBC’). The Insolvency and Bankruptcy Board of India (‘IBBI’) vide order dated 22-08-2017 advised to incorporate and consider the claims of the homebuyers from the records of the Corporate Debtor (JIL), who did not file the claim form. Acting upon the said advice of IBBI and for the information of homebuyers, IRP incorporated flats of such homebuyers (including appellant) as liabilities in the information memorandum and mentioned that there was no separate requirement of any claim to be submitted by the appellant. The appellant’s flat was also provided in the information memorandum supplied by the IRP. Accordingly, the resolution plan was floated while considering and factoring in all liabilities, including the appellant’s flat.

The present dispute revolved around Clause 17.30 of the said resolution plan which provided that the cut-off date for submission of claims shall be a contingent date, approved by the National Company Law Tribunal vide order dated 07-03-2023. Relying on the said clause, the appellant was denied the right over his flat on the ground that the claim form was not submitted on or before 07-03-2023 but on 12-03-2023.

Aggrieved, the appellant preferred an application, which came to be dismissed by the NCLAT vide the impugned order. Hence, the present appeal. The appellant assailed the NCLAT’s order for dismissing the appellant’s application erroneously with a non-reasoned order and without considering the merits of the facts and circumstances of the matter at hand.

Appellant’s stand before the Court was that non-filing of the claim etc. by the appellant should not result in rejection of his claim and entitlement as a home buyer.

Order

The Court issued notice to JIL and clarified that the issue of notice in the present appeal will not come in the way of execution or implementation of the resolution plan and the allotment of the unit to the appellant, if made, will be subject to the outcome of the present appeal.