HDFC approaches NCLAT to recover dues from RHC Holding; challenges NCLT order

HDFC has challenged an NCLT ruling that dismissed the mortgage lender's insolvency plea against RHC Holding, an entity promoted by billionaire brothers Malvinder Mohan Singh and Shivinder Mohan Singh.

Following the plea, the National Company Law Appellate Tribunal (NCLAT) Monday issued notices to RHC Holding and other parties and directed them to file their replies.

A two-member bench headed by Justice S J Mukhopadhaya listed the matter for next hearing on February 1.

HDFC Ltd had challenged the December 6, 2018 order of the Principal bench of National Company Law Tribunal (NCLT), which had dismissed its insolvency plea against RHC Holding, observing that it was an non-banking financial company does not come under the purview of the IBC Code.

HDFC Ltd, had moved the NCLT to recover an amount of Rs 41 crore.

RHC Holding, promoted by the Singh brothers, had taken a loan of Rs 200 crore from HDFC in April 2016. RHC Holding had paid the interest for the first quarter on time but later started defaulting on it.

According to HDFC, even after adjusting the proceeds from the sale of the pledged share, a substantial amount of Rs 41.09 crore remained due.

To recover the remaining amount, HDFC filed a insolvency plea against RHC Holding before NCLT.

Subsequently, Japanese drug major Daiichi Sankyo had moved NCLT to stay the insolvency proceedings against RHC Holding.

NCLT Had observed that RHC Holding was a non-banking finance company as per the certificate of registration issued by the banking regulator RBI.