Chitra Sharma Vs. Union of India [Writ Petition (Civil) No.744 of 2017] - Synopsis
Team SoOLEGAL 18 Jan 2021

The case, Chitra Sharma Vs. Union of India [Writ Petition (Civil) No.744 of 2017], had emerged from the case IDBI Bank Vs. Jaypee Infratech Limited and was part of that case, in which the Supreme Court had stayed the order which was passed by the National Company Law Tribunal, Allahabad Bench. Learned Attorney General for India, appearing for the respondent, had claimed that the order passed by the Supreme Court on 04.09.2017 had to be revised as the effect of the stay would be that Respondent No.3–Jaypee Infratech Ltd. would be reinstated. Learned Attorney General urged that, if the previous management of the aforementioned company persists, the interests of borrowers and customers will also be impacted. The Court was told that the Interim Resolution Professional (IRP) had handed over documents to respondent No. 3 –Jaypee Infratech Ltd after the stay order was passed by the Court. The learned Attorney General had submitted that the IRP should be allowed some time to devise at least a provisional scheme in order to safeguard the rights of all stakeholders. The learned senior counsel for IDBI Bank Limited had argued that, under the regulatory system, the IRP has to take charge otherwise the spirit of the act will get affected.
The Supreme Court had held that, the Interim Resolution Professional shall take over the administration of Jaypee Infratech Limited. The IRP shall, within 45 days, devise and apply an Interim Resolution Proposal to this Court. The Interim Resolution Proposal shall make all arrangements appropriate to safeguard the rights of home buyers. The Court had directed Mr. Shekhar Naphade, a senior counsel with Mrs. Shubhangi Tuli, Advocate-on-Record, to take part in the meetings of the Committee of Cr5editors under Section 21 of the Insolvency and Bankruptcy Code of 2016 to help the cause of home buyers and to protect their rights. The Court had also directed Jaiprakash Associates Limited to deposit a sum of Rs 2000 Crores on or before 27th October, 2017, before this Court. If any properties or assets of Jaiprakash Associates Limited are to be sold, this should be done after receiving the prior permission of this Court.


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