DHFL lenders appeal against NCLT order in NCLAT

24 May , 2021 By : Kanchan Joshi

MUMBAI: Lenders to bankrupt Dewan Housing Finance Ltd (DHFL) on Monday filed an appeal in the National Company Law Appellate Tribunal (NCLAT) challenging the Mumbai bench of National company law tribunal (NCLT)’s order which has asked for evaluation of the offer made by by DHFL's erstwhile promoter Kapil Wadhawan.

The matter is expected to come up for hearing this week.

In the appeal, lenders have said the appellate tribunal should put a stay on the meeting to consider Wadhawan’s proposal while passing the rest of the order approving the deal with Piramal Group.

“Is there a concept of one-time settlement in Insolvency and Bankruptcy code? The promoter has only written a letter, not given any formal proposal. We are therefore putting IBC into a tailspin. Tomorrow any promoter can quote the DHFL case and file a case against the lenders. That’s why we have decided to file the appeal," said an official aware of the development.

NCLT on Wednesday directed DHFL lenders to consider the offer made by Wadhawan, who has proposed to fully settle the mortgage lender’s dues worth Rs91,000 crore, including Rs43,000 crore in the initial few years.

The tribunal’s Mumbai bench has asked DHFL’s committee of creditors (CoC) to meet within 10 working days to consider Wadhawan’s offer. The surprise turn of events comes at a time when both the CoC and the Reserve Bank of India have already approved the Piramal Group’s proposal to acquire DHFL, and the proposal is before NCLT.