The National Company Law Appellate Tribunal (NCLAT) on Tuesday stayed the direction of NCLT Mumbai telling DHFL’s lenders to consider the offer by the debt-ridden mortgage firm’s erstwhile promoter Kapil Wadhawan.
A vacation bench of NCLAT comprising Acting Chairman Justice A.I.S. Cheema and Member-Technical V.P. Singh stayed the order passed by the Mumbai bench of the National Company Law Tribunal (NCLT).
On May 19, NCLT had directed the settlement plan offered by Mr. Wadhawan to be considered by the lenders of DHFL, one of the lawyers engaged in the matter said.
Meanwhile, the appellate tribunal also clarified that its order should not come in the way of the NCLT to decide on the approval of the plan selected by the Committee of Creditors (CoC), the lawyer added.
Piramal Group
In January, the CoC voted in favour of selling DHFL to the Piramal Group under the bankruptcy process.
NCLAT’s direction came on an urgent petition moved by the Union Bank of India on behalf of the CoC of Dewan Housing Finance Corporation Ltd.(DHFL).
DHFL had gone bankrupt with more than ₹90,000 crore in debt owed to various lenders, including banks, mutual funds and individual investors who had invested in fixed deposits.