SC rejects 63 Moons plea seeking stay in DHFL resolution

The Supreme Court on Monday rejected the appeal of 63 Moons Technologies, a debenture holder of debt-ridden Dewan Housing Finance (DHFL), seeking stay on the implementation of Piramal’s approved resolution plan for the mortgage lender.

63 Moons, which holds non-convertible debentures (NCDs) worth over Rs 200 crore issued by DHFL, had challenged the National Company Law Appellate Tribunal’s order that refused to stay the resolution plan. 63 Moons has been saying that the current resolution plan is disappointing for NCD holders.

A Bench led by Justice LN Rao, however, rejected the appeal, saying it is not “persuaded to hear it” when it is pending before the NCLAT. It also requested the appellate tribunal to decide the matter expeditiously within two months.

The bench during the hearing observed that the appellant had voted in favour of the resolution plan.

Senior counsel Anupam Lal Das, appearing for 63 Moons, argued that if the resolution plan is implemented, the position of all stakeholders would be irreversibly altered. The stipulation in the approved resolution plan will deprive the persons who were defrauded by fraudulent transactions and this would be against the public policy, 63 Moons said, adding that ascribing a value of Rupee 1 to future recoveries (involving amounts in excess of Rs 45,000 crore) has not adequately been factored in the resolution plan, and this has not taken into consideration the aspect of value maximisation of the assets of DHFL.

However, both solicitor general Tushar Mehta, appearing for the CoC, and senior counsel AM Singhvi, appearing for the successful resolution applicant, opposed the appeal.

The NCLT, Mumbai Bench, had on June 7 conditionally approved the Piramal Capital & Housing Finance’s Rs 34,250-crore resolution plan to acquire DHFL.

DHFL has been undergoing insolvency proceedings at the NCLT in Mumbai since December 3, 2019. It has admitted claims of Rs 87,120 crore, with State Bank of India being the lead creditor. Bondholders have claimed Rs 45,550 crore while financial creditors have sought Rs 41,342.23 crore from DHFL.

Lenders on January 15 had voted in favour of Piramal Capital’s Rs 34,250-crore bid for the troubled mortgage lender with 93.65% vote. 63 Moons Technologies also voted in favour of the Piramal’s plan.