The case involves a dispute regarding the procedure for determining the voting share for passing resolutions in the Committee of Creditors (COC) during the Corporate Insolvency Resolution Process (CIRP) of Jaypee Infratech Ltd. The issue arises because the COC comprises multiple classes of Financial Creditors, including home buyers, lenders, and fixed deposit holders, each with varying voting percentages. Several voting items tabled before the COC have failed to pass due to not meeting the minimum voting threshold under the Insolvency and Bankruptcy Code (IBC). The home buyers, who constitute a significant portion of the voting share, have shown low participation in voting, leading to a standstill in the CIRP.
IDBI Bank filed a Corporate Insolvency Resolution Process (CIRP) application against Jaypee Infratech Ltd. (JIL) under Section 7 of the Insolvency and Bankruptcy Code (IBC). The CIRP was initiated on August 9, 2017. Home buyers, who had invested in JIL's projects, filed a writ petition in the Supreme Court of India. The Supreme Court disposed of the writ petitions and directed the recommencement of the CIRP, including home buyers as financial creditors. The Interim Resolution Professional (IRP) identified home buyers as a class of creditors and appointed authorized representatives. Two Committee of Creditors (COC) meetings were held, but several resolutions failed to pass due to not meeting the required voting threshold. The voting share of home buyers is 58.1%, but
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Corporate Insolvency Resolution Process (CIRP)…
Home buyers filed a…
The case involves a dispute regarding the procedure for determining the voting share for passing resolutions in the Committee of Creditors (COC) during the Corporate Insolvency Resolution Process (CIRP) of Jaypee Infratech Ltd. The issue arises because the COC comprises multiple classes of Financial Creditors, including home buyers, lenders, and fixed deposit holders, each with varying voting percentages. Several voting items tabled before the COC have failed to pass due to not meeting the minimum voting threshold under the Insolvency and Bankruptcy Code (IBC). The home buyers, who constitute a significant portion of the voting share, have shown low participation in voting, leading to a standstill in the CIRP.
IDBI Bank filed a Corporate Insolvency Resolution Process (CIRP) application against Jaypee Infratech Ltd. (JIL) under Section 7 of the Insolvency and Bankruptcy Code (IBC). The CIRP was initiated on August 9, 2017. Home buyers, who had invested in JIL's projects, filed a writ petition in the Supreme Court of India. The Supreme Court disposed of the writ petitions and directed the recommencement of the CIRP, including home buyers as financial creditors. The Interim Resolution Professional (IRP) identified home buyers as a class of creditors and appointed authorized representatives. Two Committee of Creditors (COC) meetings were held, but several resolutions failed to pass due to not meeting the required voting threshold. The voting share of home buyers is 58.1%, but
…Corporate Insolvency Resolution Process (CIRP)…
Home buyers filed a…