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DHFL lenders challenge NCLT order to consider Kapil Wadhawan's offer

Last week, NCLT had asked the administrator of DHFL, appointed by the Reserve Bank of India (RBI), to place Wadhawan's resolution plan before the CoC.

twitter-logoBusinessToday.In | May 24, 2021 | Updated 22:38 IST
DHFL lenders challenge NCLT order to consider Kapil Wadhawan's offer
Last year, Wadhawan had made his settlement offer to the CoC which was rejected due to lack of credibility and the valuations attached to the proposed asset sales.

The lenders of Dewan Housing Finance Corporation Ltd (DHFL) have challenged the National Company Law Tribunal's (NCLT's) order asking them to consider the resolution plan of the bankrupt company's former promoter Kapil Wadhawan.

The Committee of Creditors (CoC) of DHFL has filed an appeal challenging NCLT's Mumbai bench order in the National Company Law Appellate Tribunal (NCLAT). It is scheduled for hearing on Tuesday.

Last week, NCLT had asked the administrator of DHFL, appointed by the Reserve Bank of India (RBI), to place Wadhawan's resolution plan before the CoC, and gave the lenders 10-days time to review the offer.

According to sources, lenders in their petition have requested the appellate tribunal to stay the NCLT order.

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The matter will be heard by a vacation bench of NCLAT comprising Acting Chairman Justice A I S Cheema and Member Technical V P Singh.

In January, Piramal Capital and Housing Finance Ltd, a subsidiary of Piramal Enterprises Limited, had won the bid for acquiring DHFL. The resolution plan had received approvals from RBI in February 2021 and Competition Commission of India (CCI) in April 2021.  

Last year, Wadhawan had made his settlement offer to the CoC which was rejected due to lack of credibility and the valuations attached to the proposed asset sales. In the plan, Wadhawan had proposed to repay lenders by selling assets.

In November 2019, RBI had referred DHFL -- then the third-largest pure-play mortgage lender -- for resolution under the Insolvency and Bankruptcy Code (IBC).

DHFL had gone bankrupt with more than Rs 90,000 crore in debt to various lenders, including banks, mutual funds and individual investors who kept fixed deposits with the company.

(With PTI inputs)

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