NCLAT refuses to stay Piramal Group's resolution plan for DHFL

The National Company Law Appellate Tribunal (NCLAT) on Friday refused to stay the resolution plan of Dewan Ho­u­sing Finance Corporation (DHFL) and its subsequent tak­e­over by Piramal Group over the plea filed by 63 Moons Technologies.

A two-member ben­ch presiding over the case said, “We do not think that any int­erim order as sou­ght with regard to resolution plan app­roved needs to be passed.”

Further, on the argument of 63 Moons Technologies that the execution of the plan sho­uld be the subject of the outcome of its appeals, the bench said, “...we have observed that it is a matter of law and we need not pass any specific orders”. 

63 Moon Technologies had moved the NCLAT against the NCLT’s approval of Piramal Group’s resolution plan. It holds around Rs 200 crore worth of non-convertible deb­en­tures (NCDs) issued by DHFL. The company is of the view that the amount recovered from the erstwhile promoters of DHFL and other parties under Sec­tion 66 of the Insolvency and Bankruptcy Code (IBC) should come to the creditors of DHFL. Instead, the firm alleged, Piramal Gro­up’s plan benefits itself, allowing it to reap the benefits of recoveries from the promoters. 

The RBI-appointed administrator has filed avoidance app­lications or recovery of fraudulent transactions worth Rs 45,000 crore under Section 66 of the IBC.