Two applications have been filed against Dewan Housing Finance Corporation Ltd. in the National Company Law Appellate Tribunal (NCLAT) by administrator and lenders, challenging the order of the Mumbai Bench of the National Company Law Tribunal (NCLT), which directed DHFL’s Committee of Creditors (CoC) to consider the offer given by its former promoter, Kapil Wadhawan, within 10 days.

 

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The lenders have stated Wadhwan’s proposal as superficial, replete with misrepresentations, untruths, without financial support or commitments, and presented in disregard of the scheme of the insolvency code. The administrator challenged the NCLT order’s timing as the bench is about to retire in June, and further delay may lead to a situation where the case has to be re-argued before a new bench. The application has asked direction from NCLAT to NCLT to pass an order on the offer presented by the Piramal Group within one week. The CoC, which is led by the Union Bank of India, has requested the NCLT order be set aside.

According to the sources, Piramal Enterprises Ltd. is ready to apply with the NCLAT challenging the NCLT order. Wadhawan has offered ₹91,158 crores, over ₹50,000 crores more than the ₹34,250 crores offered by Piramal. Nevertheless, the administrator and the RBI have submitted that Wadhawan is unfit under Section 29A of IBC, which prohibits defaulting promoters from taking back control.

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