With the National Company Law Appellate Tribunal (NCLAT) setting aside an order of the National Company Law Tribunal (NCLT) directing the lenders of Dewan Housing Finance Corporation Ltd to consider an offer made by the company’s former promoter, Kapil Wadhawan, the debt resolution process of DHFL is back on track.
The appellate tribunal clarified that its order should not come in the way of NCLT approving the plan the Committee of Creditors (CoC) has zeroed-in on. The CoC, the administrator of DHFL, and Piramal Enterprise had filed separate pleas challenging the NCLT order. On May 19 the NCLT had ordered the CoC to consider the offer made by Kapil Wadhawan within the next 10 days.
In its application, Piramal Group said the CoC did not consider it necessary to consider the settlement proposal of Wadhawan because there was no provision under the Insolvency and Bankruptcy Code and related rules and regulations that requires the CoC to consider a settlement proposal from the director or promoter of the corporate debtor at a belated stage and after the approval of the resolution plan.
The RBI-appointed administrator of DHFL had also questioned the timing of the NCLT order given that the Bench is to retire in June and any delay could lead to a situation where the case would have to be re-argued before a new Bench. NCLAT will hear the case next on June 25.
Jaiprakash takes cue
Meanwhile, taking a cue from Wadhwan’s bid for DHFL, Manoj Gaur, Executive Chairman of Jaiprakash Associates, has made a similar offer to the creditors of Jaypee Infratech. Gaur has offered to repay banks and financial institutions in full, Rs. 9,783 crore by way of upfront payment, land swap, and long- term debentures with a total value of about Rs. 12,500 crore.