Refuses to stay operation of resolution plan in the interim
The Supreme Court has directed the National Company Law Appellate Tribunal (NCLAT) to complete the hearing of the appeal filed by 63 Moons Technologies against the Piramal Group’s resolution plan for mortgage financier Dewan Housing Finance Corporation Ltd (DHFL), within two months.
Enabling the implementation of the resolution process of DHFL to continue, the Supreme Court also refused to grant a stay on it.
“63 Moons appeal in NCLAT questioned the legality of Piramal’s Resolution Plan for DHFL, where Piramal may be able to potentially pocket ₹45,000 crore that may be recovered from the Wadhawans and their associates,” 63 Moons said in a statement, adding that the NCLAT, while issuing the notice, did not stay the implementation of the resolution plan.
63 Moons holds non-convertible debentures worth over ₹200 crore issued by DHFL.
It had moved the Supreme Court last month against the NCLAT’s order that refused to stay the resolution plan for DHFL. The next hearing of 63 Moon’s petition in the NCLAT is on September 15.
It has issued notices to the Committee of Creditors, the administrator of DHFL and Piramal Capital and Housing Finance Ltd (PCHFL).
The financial services company had approached the NCLAT soon after the NCLT approved (June 7) the Piramal Group’s ₹37,250-crore resolution plan for mortgage financier DHFL, subject to certain conditions.
The company had termed the resolution plan as disappointing for NCD holders as they have to take a steep haircut.
“The Supreme Court order today is a win-win for both parties. It ensures that the implementation of the resolution plan of DHFL will continue even while the NCLAT will hear the petition of 63 Moons in a time-bound manner and gives clarity to NCD holders,” said an expert.
However, whether 63 Moons will appeal the order of the NCLAT if it is not in its favour remains to be seen.
“The order passed by the Supreme Court has come as a set back to the creditors holding NCDs in DHFL. Though the apex court has directed the NCLAT to expeditiously decide the issue of undue enrichment raised by 63 Moons Technologies Ltd. within two months, the refusal to stay the implementation of the Resolution Plan may cause discontent in the NCD holders, as at present, they stand to bear the maximum loss as opposed to any other creditor of DHFL,” said Ruby Singh Ahuja, Senior Partner, Karanjawala & Co.