New Delhi. The National Company Law Appellate Tribunal (NCLAT) has set aside the order of the Mumbai Bench of the National Company Law Tribunal (NCLT) in respect of debt-ridden company DHFL. The NCLT had directed the administrator of DHFL to place the second resolution offer of the company’s erstwhile promoter Kapil Wadhawan before the lenders for consideration.
The Appellate Tribunal observed that the NCLT has passed the order to consider the second proposal of the Wadhawans ignoring the fact that the Committee of Creditors (CoC) of DHFL has already approved the resolution plan of Piramal Capital and Housing Finance by a majority vote. and the Administrator has placed it before him for his approval. “Once the resolution plan is approved by the CoC, there is no scope for any dialogue between the parties concerned,” the NCLAT said, citing the recent Supreme Court judgment in the Ebix Singapore case.
A three-member bench of the NCLAT, in its judgment passed on January 27, 2022, said, “This decision is beyond the jurisdiction of the NCLT. As such, this decision is not maintainable and is dismissed.” The NCLAT has given this direction on the petitions filed by Union Bank of India on behalf of CoC, DHFL Administrator and Piramal Capital and Housing Finance. The order of NCLT was challenged in these petitions. Earlier on May 19, 2021, the NCLT had directed the administrator of Dewan Housing Finance Corporation Limited (DHFL) to place the second proposal of the Wadhawans before the CoC for consideration, decision and voting and inform it within 10 days. .
This order was challenged by the CoC, Administrator and Piramal before the Appellate Tribunal. During the pendency of this appeal before the Appellate Tribunal, the NCLT had passed an order on June 7, 2021 to approve the resolution plan of Piramal Capital and Housing Finance Limited. The petitioners submitted that the Wadhawans have been sending several letters and proposals during the Corporate Insolvency Resolution Process (CIRP) of DHFL.
The CoC is of the view that such proposals need not be considered. Wadhawan’s second offer is also similar to the first offer in a different way. The insolvency and bankruptcy proceedings against DHFL were initiated on November 20, 2019. The NCLT had dissolved the board of directors of DHFL and appointed an administrator to manage its affairs.