Kapil Wadhawan, erstwhile promoter of Dewan Housing Finance Restricted (DHFL), has moved Supreme Court docket towards the order of the Nationwide Firm Regulation Appellate Tribunal (NCLAT), staying the ruling of the chapter tribunal (NCLT) asking banks to contemplate his provide.
The lenders and the RBI-appointed administrator of DHFL had moved the NCLAT, difficult the order handed by the tribunal, saying there was no foundation in legislation for such an order or the NCLT couldn’t direct the committee of collectors (CoC) to contemplate a plan.
In a letter to the administrator in December, Wadhawan had reiterated his provide to pay your complete excellent principal of Rs 91,158 crore to collectors — an upfront cost of Rs 9,000 crore and the rest within the type of debt-to-equity conversion throughout 7-Eight years.
Piramal Group, whose decision plan for DHFL has been authorized by all of the stakeholders and was solely awaiting the tribunal’s nod for closure of the method, moved the appellate tribunal difficult the NCLT order.
In its utility, Piramal Group had stated “the impugned order throws open floodgates of litigation from all sundry … the adjudicating authority had no jurisdiction to entertain any utility whereas ignoring the statutory timelines beneath Part 12A of the IBC”.
The NCLAT requested the respondents — on this case Kapil Wadhawan — to file a reply inside two weeks. The matter shall be heard once more on June 25.
Nevertheless, Wadhawan moved SC earlier than that.
DHFL grew to become the primary monetary providers firm to be referred to the NCLT by the RBI in November 2019 after it defaulted on its funds and the lenders didn’t discover a decision beneath the June 7 round of the RBI.
The collectors have claimed dues of Rs 87,000 crore. The liquidity disaster after the collapse of IL&FS in 2018 led to DHFL’s downfall. Earlier than that, it was one of many largest mortgage lenders within the nation.
The tribunal has stated the pendency of the attraction earlier than it shouldn’t are available in the way in which of the NCLT passing orders in approving the decision plan, on which listening to has concluded and the order is reserved.
The decision plan of Piramal Group has been authorized by the lenders, the Reserve Financial institution of India (RBI), and the Competitors Fee of India (CCI).
The NCLT on Might 19 had handed an order during which it stated the second proposal of Wadhawan deserved to be examined on deserves and put to vote by the CoC. The order requested the administrator of DHFL to current the provide of the erstwhile promoter earlier than the CoC in 10 days and had scheduled the subsequent listening to for Might 31.
The lenders have been mulling their choices for the reason that order got here final week. Interesting the order within the appellate tribunal was one. It is because the CoC had voted in favour of a decision plan. The bankers have been apprehensive of contemplating the settlement provide of the promoter as a result of the account was declared “fraud” by them.
Wadhawan is in jail on money-laundering costs.