In Brief
Homebuyers of Jaypee Infratech projects challenged the exclusion of their interests during corporate insolvency proceedings. The Supreme Court held that the June 2018 Insolvency Ordinance statutorily recognizes homebuyers as financial creditors with voting rights in the Committee of Creditors. The Court revived the 180-day CIRP period to allow fresh consideration by a reconstituted committee including homebuyers, but barred the promoters (JAL) from participating under Section 29A eligibility restrictions. The Court rejected claims for immediate refund disbursement, emphasizing the need for a composite resolution plan protecting all stakeholders. It directed the RBI to proceed with insolvency against JAL and permitted fresh bid invitations for resolution, securing homebuyers' interests while maintaining IBC discipline.
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