By Prateek Kumar, Sahil Narang, Raveena Rai
The corporate insolvency resolution process (CIRP) against Jaiprakash Infratech Limited (JIL) commenced when the National Company Law Tribunal, Allahabad (NCLT) passed an order dated 09.08.2017 admitting the petition of IDBI Bank Limited under Section 7 of the Insolvency and Bankruptcy Code 2016 (IBC).
Home buyers who had invested in housing projects by JIL, were permitted by the Interim Resolution Professional (IRP) to submit their claims as ‘other creditors’, subordinate to financial and operational creditors of JIL. Thereafter, a series of writ petitions were filed before the Supreme Court to specifically protect the interests of home buyers as the IBC did not provide them with any preferential treatment. These writ petitions were clubbed together with the lead matter being Chitra Sharma & Ors. v. Union of India & Ors., W.P. (C) No. 744 of 2017 (Chitra Sharma).