# In the matter of 63 Moons Technologies Limited Formerly Known as Financial Technologies (India) Ltd. Vs. The Administrator of Dewan
Housing Finance Corporation Limited & Ors. Company Appeals (AT) (Insolvency) No. 454, 455 and 750 of 2021

> NCLAT judgment dated 2022-01-27. Citation: TCN-2022-NCLAT-00656. The case involves appeals against a common order dated 07.06.2021 passed by the National…

- **Court:** NCLAT
- **Order date:** 27 Jan 2022
- **Citation:** TCN-2022-NCLAT-00656
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/63-moons-technologies-limited-formerly-known-as-financial-technologies-india-ltd-99f78a4f

## Summary

### Background

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.

## Facts

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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## Issues and analysis

### Issue 1: Whether the stipulation in DHFL's Resolution Plan of recoveries from Avoidance transactions enuring …

**Ratio:** The ratio is derived from the Venus Recruiters case, which states that avoidance

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**Reasoning:** The court reasoned that the NCLT failed to properly consider the submissions and

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**Interpretation:** The interpretation revolves around whether the commercial wisdom of the CoC can

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**Application:** The court applied the ratio of the Venus Recruiters case to the facts of the

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## Parties

- **Judges:** M. Venu…; V. P. S…; +1 more
- **Appellants:** 63 Moons Technolog…
- **Respondents:** Dewan Housing…; The Administrator…

## Timeline

- **2019-12-03 — Admission of Company…**: RBI filed a company petition under Section…
- **2020-03-20 — Issuance of Request for…**: A request for Resolution Plan was issued, inviting prospective Resolution Applicants to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 66 — Fraudulent trading or wrongful trading](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-66)

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