The administrator of Dewan Housing Finance Corporation (DHFL) and its lenders have moved the National Company Law Appellate Tribunal (NCLAT) towards the May 19 order of the National Company Law tribunal (NCLT), which had directed the administrator to position the settlement supply of the agency’s jailed promoter Kapil Wadhawan earlier than the committee of collectors (CoC), and has requested the CoC to think about the proposal inside 10 days.
The administrator and the lenders of DHFL in two separate pleas requested the NCLAT to dismiss the NCLT order and stated the order can disrupt the strict timelines underneath the insolvency code. The administrator has additionally stated the CoC is being compelled to vote on Wadhawan’s “flimsy” settlement proposal towards its industrial knowledge. In its petition to the NCLAT, the administrator has additionally questioned the timing of the NCLT order because the time period of the bench that handed the order is coming to an finish within the first week of June.
“…the present bench’s term is scheduled to expire on or around the first week of June 2021, and any delay could result in all the above having to be re-argued, jeopardising the chances of a successful and timely resolution of the CIRP. It is at such a belated stage the adjudicating authority passed the impugned order (May 19)…” stated the administrator.
It stated the NCLT’s order is in “conscious disregard of judicial economy. The petition said the NCLT has unconditionally accepted Wadhawan’s proposal, which is “without any financial backings” and has been solely put ahead to stall decision course of.
The administrator additionally stated that Wadhawan had despatched the proposal to the Reserve Bank of India (RBI) however the regulator selected to not act on it. According to the petition, Wadhawan is ineligible to submit a plan as DHFL’s account has been labeled as “fraud” as a result of his conduct. It stated that preferential transaction functions price Rs 45,000 crore are pending towards Wadhawan and lenders have invoked private ensures given by him. The RBI, the CoC and the Competition Commission of India (CCI) have already accredited the Rs 37,250 decision plan provided by Piramal Enterprises. However, the NCLT is but to offer its nod to the plan.