The National Company Law Appellate Tribunal (NCLAT) on Tuesday stayed an order passed by the Mumbai bench of National Company Law Tribunal (NCLT) asking the lenders of bankrupt Dewan Housing Finance Ltd (DHFL) to consider the resolution plan of the company's former promoter Kapil Wadhawan.
The Union Bank of India had approached the appellate tribunal on behalf of the Committee of Creditors (CoC) of DHFL against the NCLT order.
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.
A vacation bench of NCLAT, comprising of Acting Chairman Justice A I S Cheema and Member Technical V P Singh, stayed the order passed by NCLT, one of the lawyers engaged in the matter said.
The bench also clarified that its order should not come in the way for NCLT to approve the plan selected by the CoC, the lawyer added.
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)