NCLT allows Indiabulls group companies plea to secure assigned loans

By: |
February 06, 2020 9:49 PM

The counsel representing Indiabulls said the diversified finance company wants to recover dues against loans assigned to it by DHFL as the assignment was done prior to the imposition of the moratorium.

On January 27, two Indiabulls Group companies had filed an application in NCLT against IDBI Trusteeship to recover dues against loans assigned to them by DHFL.On January 27, two Indiabulls Group companies had filed an application in NCLT against IDBI Trusteeship to recover dues against loans assigned to them by DHFL.

The National Company Law Tribunal (NCLT) on Thursday allowed Indiabulls to recover its dues originating from loans assigned to it by Dewan Housing Finance (DHFL), saying these transactions were completed before the moratorium kicked in.

The counsel representing Indiabulls said the diversified finance company wants to recover dues against loans assigned to it by DHFL as the assignment was done prior to the imposition of the moratorium.

The insolvency regulations specifically excludes third party assets held by a corporate debtor, he added.

DHFL’s RBI-appointed administrator and IDBI Trusteeship did not object to this application.

The tribunal directed the distribution of current and future receivables as per the assignment agreement between DHFL and Indiabulls entities.

On January 27, two Indiabulls Group companies had filed an application in NCLT against IDBI Trusteeship to recover dues against loans assigned to them by DHFL.

The non-banking finance company had entered into an arrangement for assignment of loans with Indiabulls Commercial Credit and Indiabulls Housing Finance for consideration.

According to the arrangement, the Indiabulls entities became the assignee of the loans and DHFL ceased to hold any rights in such loans after the assignment.

DHFL continued to act as a collecting agent for the two Indiabulls entities and deposited the collections with IDBI Trusteeship.

As per the arrangement, IDBI Trusteeship was entitled to 20 per cent of the collections deposited with it against certain loans.

DHFL became the first financial services company to be referred to the NCLT under new rules notified by the government on 15 November, 2019.

In December 2019, NCLT had admitted a Reserve Bank’s move to initiate insolvency proceedings against the financial services company.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1ITC Q1 profit up 30.24% at Rs 3,343.44 cr, revenue rises 35.9% as segments rebound
2IndusInd Bank to raise up to Rs 30,000 cr via equity, debt
3Lower provisions lead ICICI Bank to post 52% jump in Q1 profit; retail asset stress increases