NCLT dismisses HDFC plea for insolvency proceedings against RHC Holding

HDFC had approached NCLT seeking repayment of Rs 410 million dues from RHC Holding

In a relief of sorts to the former promoters of Fortis Healthcare, Malvinder Mohan Singh and Shivinder Mohan Singh, the Principal Bench of the National Company Law Tribunal (NCLT) on Thursday dismissed a plea moved by HDFC to initiate insolvency proceedings against RHC Holding Private Ltd as the latter was a financial service provider and thus out of the purview of the Insolvency and Bankruptcy Code (IBC).  

Section 3 (7), which defines corporates of the IBC, excludes financial service providing companies from going into insolvency.

HDFC had in July this year moved NCLT to recover Rs 410 million from