The case involves appeals against a common order dated 07.06.2021 passed by the National Company Law Tribunal (NCLT), Mumbai Bench, approving a resolution plan for Dewan Housing Finance Corporation Ltd (DHFL). The appeals challenge the NCLT's decision to approve the resolution plan without adequately addressing the legal issue of whether the successful resolution applicant can appropriate recoveries from avoidance applications filed under Section 66 of the Insolvency and Bankruptcy Code (IBC). The appellant contends that the NCLT failed to properly consider submissions regarding the treatment of recoveries from avoidance transactions, particularly concerning the benefit to the creditors of DHFL versus the resolution applicant.
Dewan Housing Finance Corporation Limited (DHFL) faced governance concerns and defaults, leading the Reserve Bank of India (RBI) to supersede its board and appoint an administrator. The RBI filed a company petition under Section 227 of the I&B Code, which was admitted on December 3, 2019. During the Corporate Insolvency Resolution Process (CIRP), claims of approximately ₹90,000 crores were admitted. The administrator appointed M/s Grant Thornton as transaction auditors, who identified potentially avoidable transactions under Sections 43 to 51 and 66 of the Code. Based on these findings, nine applications were filed before the NCLT regarding preferential, undervalued, and fraudulent transactions. The resolution plan was put to vote, and an overwhelming majority of
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RBI filed a company…
A request for Resolution Plan was issued,…
The case involves appeals against a common order dated 07.06.2021 passed by the National Company Law Tribunal (NCLT), Mumbai Bench, approving a resolution plan for Dewan Housing Finance Corporation Ltd (DHFL). The appeals challenge the NCLT's decision to approve the resolution plan without adequately addressing the legal issue of whether the successful resolution applicant can appropriate recoveries from avoidance applications filed under Section 66 of the Insolvency and Bankruptcy Code (IBC). The appellant contends that the NCLT failed to properly consider submissions regarding the treatment of recoveries from avoidance transactions, particularly concerning the benefit to the creditors of DHFL versus the resolution applicant.
Dewan Housing Finance Corporation Limited (DHFL) faced governance concerns and defaults, leading the Reserve Bank of India (RBI) to supersede its board and appoint an administrator. The RBI filed a company petition under Section 227 of the I&B Code, which was admitted on December 3, 2019. During the Corporate Insolvency Resolution Process (CIRP), claims of approximately ₹90,000 crores were admitted. The administrator appointed M/s Grant Thornton as transaction auditors, who identified potentially avoidable transactions under Sections 43 to 51 and 66 of the Code. Based on these findings, nine applications were filed before the NCLT regarding preferential, undervalued, and fraudulent transactions. The resolution plan was put to vote, and an overwhelming majority of
…RBI filed a company…
A request for Resolution Plan was issued,…