# In the matter of Mr Raghu K S & Ors. Vs. Mr R. Subramaniakumar
Administrator of Dewan Housing Finance Corporation Limited & Ors. Company Appeal (AT) (Insolvency) No. 538 of 2021

> NCLAT judgment dated 2022-02-07. Citation: TCN-2022-NCLAT-00641. The appeal was filed by Fixed Deposit (FD) holders of Dewan Housing Finance Corporation…

- **Court:** NCLAT
- **Order date:** 7 Feb 2022
- **Citation:** TCN-2022-NCLAT-00641
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-raghu-k-s-ors-vs-mr-r-subramaniakumar-administrator-of-dewan-housing-finance-a46cd3d6

## Summary

### Background

The appeal was filed by Fixed Deposit (FD) holders of Dewan Housing Finance Corporation Limited (DHFL), challenging the resolution plan approved by the Committee of Creditors (CoC). The FD holders were aggrieved by the distribution mechanism, which they claimed gave them a significant haircut compared to other financial creditors. The appellants argued that the resolution plan contravened the provisions of the National Housing Bank (NHB) Act and was discriminatory and arbitrary. The NCLT had approved the resolution plan, leading to the appeal before the NCLAT.

## Facts

Dewan Housing Finance Corporation Limited (DHFL), a Non-Banking Financial Company (NBFC) and Financial Service Provider (FSP), faced a liquidity crisis and defaulted on its repayment obligations. The Reserve Bank of India (RBI) superseded the Board of Directors and appointed an administrator. The Corporate Insolvency Resolution Process (CIRP) was initiated against DHFL. The resolution plan submitted by Piramal Capital & Housing Finance Limited was approved by the Committee of Creditors (CoC) with 93.65% votes. Fixed deposit (FD) holders, who are financial creditors, challenged the resolution plan, arguing that it unfairly treated them by giving them a significant haircut. The total claim amount of public depositors was Rs.5,433 crores, approximately claim of

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in approving the Resolution Plan, which proposes …

**Ratio:** The IBC overrides other laws, including the NHB Act and RBI Act, as per Section 238 of

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**Reasoning:** The NCLAT relied on the principle that the IBC is a complete code and overrides other

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**Interpretation:** Section 238 of the IBC provides that the provisions of the IBC shall have

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**Application:** The NCLAT found that the resolution plan was approved by the CoC based on its

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## Parties

- **Judges:** M. Venu…; Mr V. P.…; +1 more
- **Appellants:** Mr Ragh…
- **Respondents:** Dewan Housing…; Mr R. Subramaniaku…

## Timeline

- **2019-11-20 — RBI Supersedes DHFL…**: The Reserve Bank of India (RBI) superseded…
- **2019-11-29 — Moratorium…**: Moratorium commenced with…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(2) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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