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NCLT allows Indiabulls group to recover dues from loans assigned to DHFL

DHFL continued to act as a collecting agent for the two Indiabulls entities and deposited the collections with IDBI Trusteeship

Press Trust of India  |  Mumbai 

IBC, COMPANIES, insolvency, NPA, SMEs, MSME, NCLT, NCLAT,

The National Company Law Tribunal (NCLT) on Thursday allowed to recover its dues originating from loans assigned to it by Dewan Housing Finance (DHFL), saying these transactions were completed before the moratorium kicked in.

The counsel representing said the diversified finance company wants to recover dues against loans assigned to it by as the assignment was done prior to the imposition of the moratorium.

The insolvency regulations specifically excludes third party assets held by a corporate debtor, he added.

DHFL's RBI-appointed administrator and IDBI Trusteeship did not object to this application.

The tribunal directed the distribution of current and future receivables as per the assignment agreement between and entities.

On January 27, two Indiabulls Group had filed an application in against IDBI Trusteeship to recover dues against loans assigned to them by

The non-banking finance company had entered into an arrangement for assignment of loans with Indiabulls Commercial Credit and Indiabulls Housing Finance for consideration.

According to the arrangement, the Indiabulls entities became the assignee of the loans and DHFL ceased to hold any rights in such loans after the assignment.

DHFL continued to act as a collecting agent for the two Indiabulls entities and deposited the collections with IDBI Trusteeship.

As per the arrangement, IDBI Trusteeship was entitled to 20 per cent of the collections deposited with it against certain loans.

DHFL became the first financial services company to be referred to the under new rules notified by the government on 15 November, 2019.

In December 2019, had admitted a Reserve Bank's move to initiate insolvency proceedings against the financial services company.

First Published: Thu, February 06 2020. 21:24 IST
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