# Chitra Sharma & Ors. vs. Union of India & Ors

> SC judgment dated 2018-08-09. Citation: TCN-2018-SC-00030. The case involves a writ petition filed in the Supreme Court of India concerning the insolvency…

- **Court:** SC
- **Order date:** 9 Aug 2018
- **Citation:** TCN-2018-SC-00030
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/chitra-sharma-ors-vs-union-of-india-ors-0ebce78f

## Summary

### Background

The case involves a writ petition filed in the Supreme Court of India concerning the insolvency resolution of Jaypee Infratech Limited (JIL). IDBI Bank initiated corporate insolvency proceedings against JIL under Section 7 of the Insolvency and Bankruptcy Code (IBC) before the National Company Law Tribunal (NCLT) at Allahabad. The proceedings were triggered by JIL's default of Rs. 526.11 crores. The NCLT initiated the Corporate Insolvency Resolution Process (CIRP) on 9 August 2017, imposing a moratorium under Section 14 of the IBC. Home buyers, who had invested in JIL's real estate projects, were significantly affected by the CIRP, as the initial IBC framework did not adequately protect their interests. The petitioners, representing home buyers, sought various reliefs,

…

## Facts

IDBI Bank initiated corporate insolvency proceedings against Jaypee Infratech Limited (JIL) under Section 7 of the Insolvency and Bankruptcy Code (IBC) due to a default of Rs. 526.11 crores. The National Company Law Tribunal (NCLT) admitted the petition on 9 August 2017, initiating the Corporate Insolvency Resolution Process (CIRP) and imposing a moratorium. The case involves a large number of home buyers (646) who invested in residential projects by JIL and its holding company, Jaiprakash Associates Limited (JAL), in the National Capital Region. These home buyers faced significant delays in possession and filed consumer complaints. The Reserve Bank of India (RBI) identified JIL as one of the top 12 defaulters in the country, with approximately Rs. 8,000 crores owed to

…

## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) of Jaypee Infratech Limited (JIL) should …

**Ratio:** The Insolvency and Bankruptcy Code (IBC) aims to streamline the resolution of corporate

…

**Reasoning:** The Court considered that the home buyers' status as financial creditors was recognized

…

**Interpretation:** The Court interpreted the IBC and Article 142 to allow for the revival of the

…

**Application:** The Court applied this ratio to the specific facts of the case, where the home

…

## Parties

- **Judges:** Dr D Y Chan…
- **Appellants:** CHITRA S…
- **Respondents:** Jaypee Infratech…; Union of…
- **Other parties:** 7th Edition…; Jaypee Infratech…; +3 more

## Timeline

- **2017-08-09 — CIRP Init…**: NCLT initiated the Corporate Insolvency…
- **2017-09-04 — Supreme Court…**: Supreme Court issued notice in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/supreme-court-of-india/chitra-sharma-ors-vs-union-of-india-ors-0ebce78f