DHFL: NCLAT dismisses 63 Moons plea for stay on Piramal resolution plan

By: |
July 24, 2021 4:15 AM

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) on June 7.

DHFL has been undergoing insolvency proceedings at NCLT in Mumbai since December 3, 2019. The troubled mortgage lender has admitted claims of Rs 87,120 crore, with SBI being the lead creditor.DHFL has been undergoing insolvency proceedings at NCLT in Mumbai since December 3, 2019. The troubled mortgage lender has admitted claims of Rs 87,120 crore, with SBI being the lead creditor.

The National Company Law Appellate Tribunal (NCLAT) on Friday refused to stay the implementation of Piramal’s approved resolution plan for Dewan Housing Finance (DHFL) on the plea filed by 63 Moons Technologies, a debenture holder of the debt-ridden mortgage lender.

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) on June 7.

63 Moons Technologies holds non-convertible debentures (NCDs) worth over Rs 200 crore issued by DHFL. 63 Moons Technologies had filed two appeals before the NCLAT urging that the execution of the resolution plan should be subject to outcome of these two appeals.

“Suffice it to say that having gone through the rival contentions of the learned counsel for both sides, we do not find that these are appeals where interim order should be passed for grounds being raised by the appellant (63 Moons Technologies),” the NCLAT said in its judgment.

“If the averments made by appellant 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,” it added.

“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.

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

Lenders on January 15, 2021 voted in favour of Piramal Capital and Housing Finance’s (PCHFL) 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.

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