Fate Of Jaypee Infratech Limited Under Insolvency And Bankruptcy Code: A Case Study.

Jaypee Infratech is one of the top 12 defaulter companies on the Reserve Bank of India’s (RBI) initial list of accounts referred to insolvency under the IBC, 2016 (Code). It failed to meet expectations of about 20,000 homes in its Wish Town and Jaypee Aman projects, as well as defaulting on bank debts. Multiple precedents were set in litigations during the CIRP, and courts clarified various issues and major concerns covered by the IBC. In this case study, an attempt has been made to comprehend the background of this case to analyse the causes of downfall of Jaypee followed by pre and during CIRP performance analysis and issue-by-issue analysis to gain a comprehensive understanding of the case. Doctrinal Research methodology has been used for issue by issue analysis. In order to assess the financial performance, tools like mean, standard deviation and ‘t’ test have been used and analysis has been done using SPSS. This paper also gives recommendations to the Government to make necessary amendments in the code such as altering the definition of secured creditors, making changes in the pre pack insolvency along with implementing pre insolvency and mediation procedures and increasing number of benches and judges so that other creditors do not suffer the same fate as that of Jaypee Infratech.