The National Company Law Tribunal Monday permitted the Piramal Capital and Housing Finance to own Dewan Housing Finance Ltd (DHFL), an indebted home financier.
While allowing the petition filed by the RBI-appointed administrator to approve the successful resolution plan, the Tribunal also dismissed a plea of Kapil Wadhawan, an ousted promoter, who sought a copy of the successful resolution plan.
“The insolvency application (IA) is allowed and soon we will upload a detailed order,” said Mumbai’s NCLT chapter.
“We know everyone is waiting for a detailed order and the matter will be contested till the Supreme Court.”
In an oral observation NCLT also asked the committee of creditors (CoC) to meet retail depositors and bond holders considering their requests.
At the same time, the court favoured a case filed by the National Housing Bank, an erstwhile regulator for housing finance companies that sought to have its own share of the resolution plan. It reportedly had an exposure of about Rs 2,400 crore.
“The approval from NCLT is an affirmation of the sanctity of the IBC process in India,” said a Piramal spokesperson in a statement.
“We are committed to collaborating with all relevant authorities, regulators, creditors and investors involved in this resolution and look forward to a speedy culmination of the resolution process,” the person said.
Earlier in February, lenders had approved such a revival plan with an overwhelming majority. In a most contested bankruptcy bid, Piramal’s offer received about 94% votes of the creditors, followed by Oaktree at 45 %, while Adani Capital obtained about 18%.
The Reserve Bank of India (RBI) too cleared the Rs 34,250 crore acquisition of DHFL by the Piramal group.
“This resolution is first of its kind and it will set a precedent as prior to this no other financial service provider was taken to NCLT and resolution of its insolvency completed,” said Ashish Pyasi Associate Partner Dhir & Dhir Associates. “The magnitude of this resolution process is much bigger than Essar both in terms of money and the nature of stakes or claims involved.”
In the matter, Janak Dwarkadas, senior counsel along with Animesh Bisht, partner at law firm Cyril Amarchand Mangaldas (CAM) appeared for the Committee of Creditors, while Senior Advocate Ravi Kadam and counsel Rohan Rajadhyaksha appeared for R. Subramiakumar, RBI appointed administrator in the matter.
In between, Kapil Wadhawan also filed a case over a week ago in the Supreme Court challenging a stay order by the Appellate Tribunal, which set aside Mumbai NCLT’s order on fresh consideration of the former promoter’s offer to own the non-bank entity.
