# In the matter of Union Bank of India on Behalf of the
Committee of Creditors of Dewan Housing Finance Corporation Ltd. Vs. Kapil W adhawan & Ors. Company Appeal (AT) (Insolvency) No. 370 of 2021

> NCLAT judgment dated 2021-05-25. Citation: TCN-2021-NCLAT-00261. The case involves a Company Appeal (AT) (Insolvency) No. 370 of 2021 filed against an order…

- **Court:** NCLAT
- **Order date:** 25 May 2021
- **Citation:** TCN-2021-NCLAT-00261
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/union-bank-of-india-on-behalf-of-the-committee-of-creditors-of-dewan-housing-fin-73381278

## Summary

### Background

The case involves a Company Appeal (AT) (Insolvency) No. 370 of 2021 filed against an order passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench). The Corporate Insolvency Resolution Process (CIRP) was initiated against Dewan Housing Finance Corporation Ltd. (DHFL) by the Reserve Bank of India under Rule 5 of Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019. The appeal contests the Adjudicating Authority's direction to the Administrator to place a second settlement proposal by Kapil Wadhawan before the Committee of Creditors (CoC) for consideration, despite a resolution plan already being approved and pending before the Adjudicating

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Dewan Housing Finance Corporation Ltd. (DHFL) by the Reserve Bank of India (RBI) under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019. The RBI suspended the Board of Directors of DHFL and appointed an Administrator. A resolution plan from Piramal Capital and Housing Finance Ltd. was approved by the Committee of Creditors (CoC) with 93.65% of the vote, and the RBI issued a No Objection for the change of control and ownership. Despite the approved resolution plan, the Adjudicating Authority directed the Administrator to place a second settlement proposal from Kapil Wadhawan, the original

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in directing the Administrator to place a settlement …

**Ratio:** The legal principle is that once a Resolution Plan is approved by the CoC and is before

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**Reasoning:** The court reasoned that the matter had proceeded to the stage where a Resolution Plan had

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**Interpretation:** This issue involves interpreting the scope and applicability of Section 12A of

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**Application:** The ratio and reasoning apply to the specific facts of the case because the

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## Parties

- **Judges:** A.I.S. C…; V. P. S…
- **Appellants:** Union Bank of…
- **Respondents:** Dewan Housing…; Kapil Wadhawan &…

## Timeline

- **2019-12-03 — Company Petition…**: Company Petition was filed under Rule 5 of…
- **2020-12-19 — First Offer P…**: Respondent No. 1 sent First Offer…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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