Jaypee Infra liquidation will serve no purpose: SC

Liquidation of real estate firm Jaypee Infratech (JIL) would not "serve" the purpose of either home buyers, financial institutions or the promoters, the Supreme Court on Thursday said.

The apex court also reserved its order on "interim reliefs" prayed by various stakeholders including the home buyers of JIL, Jaiprakash Associates (JAL) which is the holding company of JIL, banks and financial institutions and the Insolvency Resolution Professional (IRP).

"The CoC has rejected the proposal. The liquidation (of JIL) will not serve anybody's purpose," a bench headed by Chief Justice Dipak Misra said when senior advocate F S Nariman, appearing for real estate firm JAL, listed out the legal options left to revive the firm.

The bench was told by Nariman that in the interest of justice, "an independent person or persons may be appointed to evaluate financial capability of JAL/JIL to continue executing the ongoing existing projects, should be accepted and then if it is stated by an expert body that JAL/JIL do not have the financial capability, consider what future steps to be taken".

The senior lawyer said that 21,532 home buyers, who constituted 92 per cent of total home buyers, have expressed faith in JIL as they did not opt for the refund and the court should keep in mind their interest while passing orders.