# In the matter of Housing Development Finance Corporation Ltd. Vs. RHC Holding Private Ltd. CA (AT) (Insolvency) No. 26-2019

> NCLAT judgment dated 2019-07-10. Citation: TCN-2019-NCLAT-00457. Housing Development Finance Corporation Ltd (HDFC Ltd), a financial creditor, filed an…

- **Court:** NCLAT
- **Order date:** 10 Jul 2019
- **Citation:** TCN-2019-NCLAT-00457
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/housing-development-finance-corporation-ltd-vs-rhc-holding-private-ltd-ca-0a39cd4b

## Summary

### Background

Housing Development Finance Corporation Ltd (HDFC Ltd), a financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) against RHC Holding Pvt Ltd (Corporate Debtor). The Adjudicating Authority (National Company Law Tribunal), Principal Bench, New Delhi, rejected the application via an order dated 6.12.2018, leading to the present appeal.

## Facts

Housing Development Finance Corporation Ltd (HDFC Ltd) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) against RHC Holding Pvt Ltd, arguing that RHC Holding Pvt Ltd owed them a debt. The Adjudicating Authority rejected the application, stating that RHC Holding Pvt Ltd is a non-banking financial institution rendering 'financial service' and is therefore outside the scope of the I&B Code. RHC Holding Pvt Ltd is registered with the Reserve Bank of India (RBI) as a non-banking financial company but is not allowed to accept public deposits. RHC Holding Pvt Ltd is a holding company that invests in shares, bonds, debentures, debts, or loans in group companies and gives guarantees on behalf of group companies. The appellant

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## Issues and analysis

### Issue 1: Whether RHC Holding Pvt Ltd, being a non-banking financial institution, falls within the definition …

**Ratio:** The definition of 'corporate person' under Section 3(7) of the I&B Code excludes

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**Reasoning:** The tribunal reasoned that RHC Holding Pvt Ltd, as a non-banking financial institution,

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**Interpretation:** The I&B Code's definition of 'corporate person' explicitly excludes

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**Application:** Since RHC Holding Pvt Ltd is a non-banking financial institution providing

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…
- **Appellants:** Housing Developmen…
- **Respondents:** RHC Holding Pvt…

## Timeline

- **2018-12-06 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), Principal Bench, New Delhi,…
- **2019-07-10 — NCLAT Or…**: The National Company Law Appellate Tribunal (NCLAT) dismissed the appeal filed by Housing…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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