 "Supreme Court")
The Supreme Court on Tuesday upheld the National Company Law Tribunal's (NCLT) decision to start insolvency proceedings against the former promoters of Dewan Housing Finance Corporation — Dheeraj Wadhawan and Kapil Wadhawan.
Both were personal guarantors for the debt-laden firm.
A bench led by Chief Justice of India Sanjiv Khanna dismissed the Wadhawans' appeal against the NCLT order.
On April 2, 2024, the Mumbai bench of the NCLT had accepted Union Bank's application to initiate insolvency proceedings against Kapil Wadhawan. Earlier, on March 20, 2024, the NCLT had admitted a similar application against his brother and co-promoter Dheeraj Wadhawan. Union Bank's plea was for a reported default of ₹3,958 crore.
The brothers told the Supreme Court that the NCLT had wrongfully applied Section 95 of the Insolvency and Bankruptcy Code (IBC). However, the court did not entertain the argument.
Section 95 of the IBC allows a creditor to initiate the insolvency resolution process against a debtor, including a personal guarantor, by filing an application with the adjudicating authority (NCLT).
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 "Enforcement Directorate, ED")
 "Rahul, Rahul Gandhi, Sonia Gandhi, Sonia")
