DHFL resolution: 63 Moons, FD holders to challenge NCLT order

Financial services firm 63 Moons Technologies on Tuesday said it is going to challenge NCLT’s approval of the DHFL resolution plan.

Though the National Company Law Tribunal (NCLT) has approved the resolution plan of Piramal Capital and Housing Finance (PCHFL) for Dewan Housing Finance (DHFL), some stakeholders are preparing to move higher courts to challenge the order.

Financial services firm 63 Moons Technologies on Tuesday said it is going to challenge NCLT’s approval of the DHFL resolution plan.

The firm wants the creditors of DHFL to receive the money, instead of the buyer (PCHFL), in case recovery happens in the alleged fraudulent transactions by former promoters. Similarly, fixed deposit (FD) holders of DHFL are planning to approach higher courts against the NCLT order as they want their full money back.

“63 Moons believes that the current resolution plan is contrary to law and against the interest of all DHFL’s creditors including NCD holders,” it said in a release issued on Tuesday. The company holds over Rs 200 crore non-convertible debentures (NCD) of DHFL.

The administrator of DHFL had filed applications for recovery of almost Rs 45,000 crores under Section 66 of the Insolvency and Bankruptcy Code (IBC) against DHFL’s promoters and other persons on account of their fraud against the creditors. The contention of 63 Moons is that Rs 45,000 crore must come to the defrauded parties, instead of the buyer. The financial services firm said the resolution plan was drafted in such a way that it favoured the resolution applicant, allowing it to reap the benefits of recoveries from the promoters.

Vinay Kumar Mittal, a lead petitioner in the court on behalf of FD holders, told FE that depositors will move the NCLAT as well as the Supreme court, if required, to get the full amount back.

NCLT on Monday approved PCHFL’s Rs 37,250-crore resolution plan for Dewan Housing Finance with a few conditions. The approval was subject to the final judgment from the NCLAT and the SCC judgment on Kapil Wadhawan’s plea in the matter.

Former DHFL promoter Kapil Wadhawan had earlier moved higher courts against the lenders for not considering his settlement offer. DHFL has total admitted claims of Rs 87,082 crore. State Bank of India (SBI) is the lead creditor to DHFL with admitted claims of Rs 7,170 crore.