NCLAT declines to stay Piramal Capital’s approved resolution plan for DHFL

By: |
July 23, 2021 4:53 PM

A two-member bench comprising its Officiating Chairperson Justice A I S Cheema and Member Alok Srivastava rejected 63 Moons Technologies' plea to pass an interim order staying the resolution plan approved by the Mumbai bench of National Company Law Tribunal (NCLT).

63 Moons Technologies holds non-convertible debentures (NCDs) worth over Rs 200 crore issued by DHFL.63 Moons Technologies holds non-convertible debentures (NCDs) worth over Rs 200 crore issued by DHFL.

The National Company Law Appellate Tribunal (NCLAT) on Friday declined to stay the resolution plan of Dewan Housing Finance Corporation Ltd (DHFL) and its subsequent takeover by the successful bidder Piramal Capital & Housing Finance over the plea filed by 63 Moons Technologies.

A two-member bench comprising its Officiating Chairperson Justice A I S Cheema and Member Alok Srivastava rejected 63 Moons Technologies’ plea to pass an interim order staying the resolution plan approved by the Mumbai bench of National Company Law Tribunal (NCLT).

Earlier on June 7, the NCLT had approved the resolution plan of Piramal Capital & Housing Finance Ltd for the debt-ridden DHFL and 63 Moons, which is a debenture holder of DHFL, filed a petition challenging it before NCLAT.

It had requested to stay the operations of the NCLT order, till the two appeals filed by it before the appellate tribunal is decided.

However, the NCLAT said: “We do not find that these are Appeals where interim order should be passed for grounds being raised by the Appellant.”

“If the averments made by Appellant (63 Moons) are juxtaposed with averments made by Respondents, we do not find it a fit case to pass interim orders as sought. We do not think that any interim order as sought with regard to Resolution Plan approved needs to be passed,” said the NCLAT.

63 Moons Technologies holds non-convertible debentures (NCDs) worth over Rs 200 crore issued by DHFL.
According to it, the resolution plan approved by NCLT is against the interests of the company’s NCD holders.

“The Learned Counsel for the Appellant argued that the execution of the Resolution Plan should be subject to the outcome of these Appeals. On July 6, 2021 itself, we have observed that it is a matter of law and we need not pass any specific orders. Both the Applications in both the Appeals stand disposed of accordingly,” the NCLAT said.
Earlier, on July 6, the NCLAT had issued notices to the lenders of DHFL and its successful bidder Piramal Capital & Housing Finance Ltd.

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