The National Company Law Appellate Tribunal (NCLAT) on Monday issued notices to the RBI-appointed administrator, committee of creditors and Piramal Capital, which has emerged as the successful bidder for Dewan Housing Finance Corporation (DHFL). The notices were issued following an appeal filed by the earlier promoter of the bankrupt mortgage lender, Kapil Wadhwan.
Wadhawan filed an application with the appellate tribunal challenging the May 19 order of the Mumbai bench of the National Company Law Tribunal (NCLT) that had approved Piramal’s Rs 34,250-crore resolution plan for DHFL.
“Issue notice. The respondents to file reply within two weeks. Rejoinder, if any, may be filed within one week thereafter. Parties to file brief written submissions, not more than three pages, and copies of the judgments on which they want to refer or rely on, within three weeks,” the two-member NCALT bench, headed by its acting chairperson AIS Cheema, said.
The tribunal has posted the matter on September 16 for further hearing along with a host of related applications.
During the course of the proceedings, Kapil Sibal, appearing on Wadhwan’s behalf, submitted that the appeal needed to be heard early and said the continuation of the resolution process should be subject to outcome of the appeal. “We have already indicated in connected matters that the issues being raised require to be adjudicated. When the appeals will be decided, the parties will be bound by the outcome. We do not want to make any comment as effect of pendency of appeal is a matter of law,” he said.
The NCLAT had on May 25 stayed the May 19 order of the NCLT, which had directed the administrator of DHFL to consider the settlement offer made by Wadhwan, but said this case would not act as an obstacle for passing the order relating to the resolution plan of the successful bidder.