Companies

DHFL’s Wadhawan moves SC against NCLAT stay on his offer

Surabhi Mumbai | Updated on June 02, 2021

On May 25, NCLAT had stayed an NCLT order asking DHFL’s creditors to consider Wadhawan’s Rs 91,000-crore settlement offer

Kapil Wadhawan, former promoter of Dewan Housing Finance Corporation Ltd, has challenged in the Supreme Court the interim order of the National Company Appellate Law Tribunal (NCLAT).

The NCLAT had on May 25 stayed the National Company Law Tribunal (NCLT) order that had asked lenders to consider a settlement offer by Wadhawan.

“Wadhawan filed a plea in the Supreme Court on May 31. No date for hearing has been posted as of now,” said a person familiar with the development.

The NCLAT had stayed an NCLT order asking DHFL’s Committee of Creditors (CoC) to consider Wadhawan’s ₹91,000-crore settlement offer. It had also said the order should not come in the way of the NCLT deciding on the resolution plan submitted for approval.

“There would be no end if such reversals are allowed. There is no dispute regarding the fact that the Resolution Plan has already been approved and is before the Adjudicating Authority,” the NCLAT had said in its interim order on the plea filed by Union Bank of India on behalf of the CoC. It will hear the matter again on June 25.

Apart from the CoC, the DHFL Administrator and the Piramal Group had filed separate petitions with the NCLAT challenging the May 19 NCLT order.

Settlement offers

In its order, the NCLT had noted that Wadhawan’s proposal is over one-and-half higher than the highest bid, and needs consideration by the Administrator and the CoC.

“It appears that with the settlement proposal thousands of the small investors, fixed deposit holders would be paid fully thereby thousands of small investors would get 100 per cent of their principal sum outstanding,” it had held.

In his second settlement plan, Wadhawan had offered ₹91,158 crore, which is substantially more than the ₹34,250 crore offered by Piramal Enterprises. Wadhawan’s offered to pay ₹9,000 crore upfront and the balance over 7-8 years.

However, the resolution of DHFL is at an advanced stage, with the Piramal’s plan cleared by the RBI and the Competition Commission.

 

 

Published on June 01, 2021

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