Jaypee Infra to obtain claims of home buyers from records if buyers fail to submit forms

As many as 40,000 Jaypee home buyers are stuck in incomplete projects floated by Jaypee Infra against which the National Company Law Tribunal has recently started insolvency proceedings.

Some legal experts advise that this is a good step and puts to rest confusion regarding which forms to file but say that buyers should still go ahead and file the form without submitting proofs as the company books do not reflect the interest component, only the amount deposited by the home buyers.

“This is a welcome step as it dispels confusion regarding which form to fill as well as the contents of the claim to be filed by home buyers as majority of homebuyers are still interested in getting possession of their apartment along with adequate compensation for the delay caused in handing over the same,” says Sahil Sethi, senior associate at Saikrishna & Associates.

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“It is of utmost importance that home buyers file their claims. This process allows them to claim : (i) their house; and (ii) delay compensation. To rely on JIL's accounts, with respect to which the home buyers have zero understanding or visibility, could end up validating unacceptable debits by JIL in the ledger accounts of the home buyers. The proposed process is definitely tilted in favour of JIL and against the home buyers while deceptively appearing helpful,” says Vivek Kohli, senior partner and co-founder of Zeus Law.

Home buyers say that while this is a big relief, the company should include the interest component too as this amount will not be reflected in its account books.

“It is a big relief on two counts - the IRP has confirmed that possession will start shortly and ready flats may be registered in favour of the buyers. Buyers have been given a big relief and confusion has been resolved since at this time there is no need for buyers to file any claim forms. All is in the books and once buyers get the statement of accounts and send back the verified statement of accounts to the IRP, they are done. The forms were confusing and creating panic,” says Col SK Nagrath, a retired army official and president of Jaypee Aman Flat Buyers' Association.

“This is a statement of assurance from the company if buyers have not filed their claims. They are reassuring buyers that even if they do not file the claims, their claims will still be considered basis the company accounts. Having said that, the IRP should include the interest component of the delayed period at the rate of 12 percent as their books will only show the amount deposited by home buyers. IRP must also allow registration of flats immediately,” says Arvind Jain, president, Developers Township Property Owners Welfare Society.
The issue of submitting forms had emerged as a major area of concern for Jaypee home buyers. Last week the Insolvency and Bankruptcy Board of India (IBBI) added a new form to enable homebuyers, such as those who have invested in Jaypee projects, to make their claims, recognising the problem that the existing forms were meant only for banks, creditors and employees. There were earlier three categories of claimants and three separate forms: Form B for operational creditors, Form C for financial creditors and Form D for workmen and employees of Jaypee Infratech that were to be filled.

Claim forms have to be filed by August 24, 2017. For this the buyers have to email their claims by filling up Form F to IRPJIL@bsraffiliates.com or send them by post to Anuj Jain, C/o BSRR & CO., Chartered Accountants, 8th Floor, Building No. 10, DLF Cyber City, Gurgaon, 122002. There is no need for them go and submit these claims at the above address in person. Last week the Insolvency and Bankruptcy Board of India (IBBI) issued a Form F for creditors other than financial and operational creditors to file a claim. This can be obtained by clicking here.

The National Company Law Tribunal (NCLT) admitted IDBI’s plea for initiating insolvency proceedings against Jaypee Infratech for defaulting on a Rs 526-crore loan earlier this month. NCLT appointed insolvency professional Anuj Jain as CEO of Jaypee Infratech. He has been given six months to revive the company. This period is extendable by another three months. In the meantime, homebuyers have been given two weeks (until August 24) to raise claims related to their investment in the Jaypee projects.

Buyers must note that in case the buyers fail to submit their proof of claim, there is third option they have under the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process For Corporate Persons) Regulations, 2016. Section 12 titled Submission of proof of claims clearly states that “a creditor, who failed to submit proof of claim within the time stipulated in the public announcement, may submit such proof to the interim resolution professional or the resolution professional, as the case may be, till the approval of a resolution plan by the committee.”