Administrator questions timing of the order, Piramal to also file plea
The Administrator and lenders to troubled Dewan Housing Finance Corporation Ltd have filed two applications in the National Company Law Appellate Tribunal challenging the order of the Mumbai Bench of the National Company Law Tribunal, which directed DHFL’s Committee of Creditors to consider the offer by its former promoter, Kapil Wadhawan, within 10 days.
The lenders termed Wadhwan’s proposal as flimsy, replete with misrepresentations, falsehoods, without financial backing or commitments, and tendered in disregard of the scheme of the insolvency code.
The administrator questioned the NCLT order’s timing given that the Bench is to retire in June and any delay could lead to a situation where the case has to be re-argued before a new Bench. The application sought a direction from NCLAT to the NCLT to pass an order on the offer by the Piramal Group within one week. The CoC, led by Union Bank of India, has asked that the NCLT order be set aside.
Separate plea by PEL
Sources said that Piramal Enterprises Ltd is set to file an application with the NCLAT challenging the NCLT order. PEL did not respond to an BusinessLine email on the issue. Wadhawan has offered Rs. 91,158 crore, which is over Rs. 50,000 crore more than the Rs. 34,250 crore offered by Piramal. However, the administrator and the RBI have submitted that Wadhawan is unfit under Section 29A of IBC, which prohibits defaulting promoters from taking back control.
NCLAT will hear the CoC’s petition on Tuesday.