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Dewan Housing Finance administrator moves NCLT

He has challenge last week’s order that asked the lenders of the NBFC to consider the settlement order proposed by its promoter Kapil Wadhawan
Representational image.

Our Special Correspondent   |   Mumbai   |   Published 25.05.21, 01:13 AM

The administrator of Dewan Housing Finance Ltd (DHFL) has moved the National Company Law Appellate Tribual (NCLAT) challenging last week’s order of the National Company Law Tribunal (NCLT) that asked the lenders of the non-banking finance company to consider the settlement order proposed by its promoter Kapil Wadhawan.

DHFL lenders have also filed a separate application against the order. According to PTI, the matter will be taken up by the appellate tribunal on Tuesday.

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The Mumbai bench of the NCLT in its May 19 order asked the administrator of DHFL — R. Subramaniakumar — to put Wadhawan’s plan before its committee of creditors (CoC). The tribunal sought a meet of the creditors within 10 days.

The administrator of DHFL said the timing of the NCLT order was surprising and in conscious disregard of judicial economy. He added that it was passed without application of mind or considering facts of the present case. The appeal further said that the NCLT order overlooked “relevant facts and settled law, ignoring the submissions and contentions of not only the appellant (administrator) and the CoC, but also the RBI’’.

In its May 19 order, the division bench of Ravikumar Durisamy and H.P. Chaturvedi had said banks constitute only 35 per cent of the debt of DHFL. There are several fixed deposit holders and retail NCD holders who are also creditors but were kept in the dark about Wadhawan’s proposal.



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