DHFL dues: Fixed deposit holders set to move NCLT

Published: February 27, 2020 2:50:37 AM

The Supreme Court had earlier directed deposit holders to take relief from CoC for their dues. Till now, 66,544 FD holders have submitted claims of Rs 5,361 crore to DHFL.

dhfl, ncltDHFL is undergoing insolvency proceedings at NCLT, Mumbai, after getting admitted on December 2, 2019.

By Ankur Mishra

The fixed deposit (FD) holders of Dewan Housing Finance (DHFL) will move the National Company Law Tribunal (NCLT), Mumbai, after its committee of creditors (CoC) refused any immediate relief in clearing dues, a lead petitioner in the matter, Vinay Kumar Mittal, told FE.

In a CoC meeting held on February 20, the authorised representative of FD holders raised the demand for payment to FD holders, especially in case of medical emergencies, and proposed that the evaluation matrix should include a statement as to how a bidder caters to fixed deposit holders. However, other than FD holders, CoC was of the view that preference could be given to one class of financial creditors.

“We are moving the NCLT in 2-3 days. It is inhuman for CoC to not consider demands of FD holders for payment in case of medical emergencies,” Mittal said.

The Supreme Court had earlier directed deposit holders to take relief from CoC for their dues. Till now, 66,544 FD holders have submitted claims of Rs 5,361 crore to DHFL.

The representative of FD holders raised the issue of payment of matured deposits and in case of medical emergencies. A representative with one of the NCD holders responded to the effect that there should not be any distinction between an FD holder and a retail investor in a mutual fund. Hence, any exemption provided by way of medical emergency to FD holders should be equally provided to retail MF investors. A representative from Union Bank of India stated that there is a clause in NHB guidelines, which specifically pertains to FD holders.

In response to an FD holder’s query on the evaluation matrix, the legal counsel to CoC stated that regulation 38 1(A) of the CIRP regulations states that a resolution plan shall include a statement as to how to how it has dealt with the interest of all stakeholders, including financial creditors and operational creditors.

However, Catalyst Trusteeship, which is representing NCD holders, stated that at this point all creditors should be treated on a par and FD holders should not be given any special treatment, or else every financial creditor may request for their interest to be considered in the evaluation matrix.

The CoC counsel suggested that a consultative committee can consider such matters after which the matter can be taken to CoC. The administrator clarified that it is the CoC’s decision to form a consultative committee, but all decisions have to be approved by CoC.

DHFL is undergoing insolvency proceedings at NCLT, Mumbai, after getting admitted on December 2, 2019.

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