PremiumMUMBAI: Kapil Wadhawan, the erstwhile promoter of Dewan Housing Finance Ltd, has filed a plea in the Supreme Court challenging the stay on the National Company Law Tribunal (NCLT) Mumbai bench's order, directing lenders of the firm to consider his settlement offer.
Late last month, the National Company Law Appellate Tribunal (NCLAT) had stayed the NCLT Mumbai bench's order which had asked DHFL's lenders consider Wadhawan's settlement offer.
The appeal was filed on Monday evening.
Last week, the Committee of Creditors (CoC) led by Union Bank, and the Reserve Bank of India appointed administrator filed separate applications challenging NCLT's order that asked them to evaluate the offer by Wadhawan in the next 10 days. In its appeal, the administrator termed the NCLT order as “illegal and in breach of settled provision of law". The insolvency law prohibits the promoter or management of any bankrupt company from attempting to re-acquire it.
On 19 May, the NCLT had directed lenders to consider the offer to fully settle the mortgage lender’s ₹91,000 crore dues, including ₹43,000 crore in the initial few years, for its “consideration, decision, voting". The surprise turn comes at a time when both CoC and the Reserve Bank of India have already approved the Piramal Group’s proposal to acquire DHFL, and the proposal is before NCLT.
Wadhawan, who is facing charges of money laundering and diversion of bank funds, has repeatedly accused DHFL’s lenders of selling the company much below its fair value
Last November, Wadhawan requested an RBI-appointed DHFL administrator to be included in the bidding process, but the lenders chose to go for Piramal, which emerged as the highest bidder after an intense bidding war between Oaktree Capital, Adani group and distressed assets buyer SC Lowy.
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