# In the matter of Kapil Wadhawan vs. Piramal Capital & Housing Finance Ltd. & Ors. Company Appeal (AT) (Insolvency) Nos. 437, 439,441,442,445,451,452 & 512 of 2023

> NCLAT judgment dated 2023-05-15. Citation: TCN-2023-NCLAT-00534. The appeals arise from the same set of facts and proceedings. The Reserve Bank of India (RBI)…

- **Court:** NCLAT
- **Order date:** 15 May 2023
- **Citation:** TCN-2023-NCLAT-00534
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kapil-wadhawan-vs-piramal-capital-housing-finance-ltd-ors-company-appeal-63254cd5

## Summary

### Background

The appeals arise from the same set of facts and proceedings. The Reserve Bank of India (RBI) superseded the Board of Directors of Dewan Housing Finance Corporation Limited (DHFL) and appointed an Administrator. The RBI filed an application against DHFL before the Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016, which was admitted on 03.12.2019. The Administrator filed various Interlocutory Applications (IAs) challenging transactions by DHFL. Piramal Capital & Housing Finance Ltd.'s resolution plan was approved by the Committee of Creditors (CoC) on 15.01.2021. Piramal, as the Successful Resolution Applicant, filed IAs to substitute itself in place of the erstwhile Administrator to pursue avoidance applications. The Adjudicating Authority

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## Facts

1. The Reserve Bank of India (RBI) initiated Corporate Insolvency Resolution Process (CIRP) against Dewan Housing Finance Corporation Limited (DHFL) by superseding its board and appointing an Administrator.
2. The Adjudicating Authority admitted the application on 03.12.2019 and confirmed the appointment of the Administrator.
3. The Administrator filed various Interlocutory Applications (IAs) challenging certain transactions undertaken by DHFL.
4. Piramal Capital & Housing Finance Ltd.'s resolution plan was approved by the Committee of Creditors (CoC) on 15.01.2021.
5. The resolution plan contained a clause allowing Piramal to pursue avoidance applications.
6. Piramal filed IAs to substitute itself in place of the erstwhile Administrator to pursue the avoidance

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## Issues and analysis

### Issue 1: Whether avoidance applications can continue after the completion of the Corporate Insolvency …

**Ratio:** Section 26 of the Code clearly indicates that avoidance applications are not to affect

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**Reasoning:** The court reasoned that Section 26 of the IBC indicates that avoidance applications are a

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**Interpretation:** The legislative intent is that avoidance applications are distinct from the

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**Application:** The court applied this reasoning to the present case, holding that the

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Kapil Wad…
- **Respondents:** Dewan Housing…; Piramal Capital…

## Timeline

- **2019-12-03 — Admission of Ap…**: The Adjudicating Authority admitted the petition filed by RBI against Dewan Housing…
- **2021-01-15 — Approval of Resolution…**: The Resolution Plan submitted by Piramal Capital & Housing Finance Ltd. was approved by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 25(2) — Duties of resolution professional](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-25)

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