The National Company Law Tribunal is expected to pronounce the order on Monday on the resolution plan submitted by Piramal Capital & Housing for the stressed Dewan Housing finance Ltd. According to the court documents, the case related to the final approval for the DHFL resolution plan is expected to come up for hearing at the NCLT Mumbai bench.
PCH has already received approval from the Competition Commission of India (CCI) and Reserve Bank of India for its ₹34,250 crore bid to take over DHFL. PCHFL’s resolution plan for DHFL had received 94% votes by the committee of creditors. The bid amount will enable lenders to recover around 40% of their dues, out of the total admitted claims at ₹87,082 crore.
However, things took a U-turn in May after the erstwhile promoter of DHFL Kapil Wadhawavan filed a case in the NCLT asking the lenders to consider his offer to fully settle the mortgage lender’s ₹91,000 crore dues, including ₹43,000 crore in the initial few years. the NCLT passed an order asking the administrator of DHFL to place the offer before the committee of creditors. It also asked the CoC to convene in 10 days to consider the proposal.
Reacting to this appeal, the CoC led by Union Bank, and the Reserve Bank of India appointed administrator filed separate applications in the National Company Appellate Tribunal challenging NCLT’s order. 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.
Late last month, the National Company Law Appellate Tribunal (NCLAT) stayed the NCLT Mumbai bench’s order which directed lenders to consider Wadhawan’s offer. This led to Wadhawan moving to the Supreme Court challenging the stay in NCLT Mumbai bench’s order.
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.
