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.