# In the matter of Vinay Kumar Mittal & Ors. Vs. Dewan Housing Finance Corporation Ltd. & Ors. Company Appeal (AT) (Insolvency) No. 506, 507 and 516 of 2021

> NCLAT judgment dated 2022-01-27. Citation: TCN-2022-NCLAT-00655. The case involves appeals against a common impugned order dated June 7, 2021, passed by the…

- **Court:** NCLAT
- **Order date:** 27 Jan 2022
- **Citation:** TCN-2022-NCLAT-00655
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vinay-kumar-mittal-ors-vs-dewan-housing-finance-corporation-ltd-ors-company-appe-19214c4a

## Summary

### Background

The case involves appeals against a common impugned order dated June 7, 2021, passed by the Adjudicating Authority/National Company Law Tribunal, Mumbai Bench, concerning the approval of a resolution plan for Dewan Housing Finance Corporation Ltd (DHFL). The appeals are filed by fixed deposit holders (FD Holders) who are aggrieved by the resolution plan, which they claim does not adequately protect their interests. The FD Holders argue that their deposits should be treated as trust money and given priority over other creditors. The Committee of Creditors (CoC) and other respondents contend that the resolution plan complies with the Insolvency and Bankruptcy Code (IBC) and that the FD Holders are treated fairly as financial creditors.

## Facts

Dewan Housing Finance Corporation Ltd (DHFL) underwent Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC). Several appeals were filed by fixed deposit holders (FD Holders) against the approval of the resolution plan by the Adjudicating Authority (NCLT, Mumbai Bench). The FD Holders claimed that their deposits should be treated as trust money and given priority over other creditors, relying on the NHB Act and RBI Act. The Committee of Creditors (CoC) argued that the resolution plan complied with the IBC and that FD Holders were treated fairly as financial creditors. The total claim amount of public depositors was ₹5,433 crores, out of which a claim of ₹5374 crores was admitted. The resolution plan proposed extinguishing claims

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## Issues and analysis

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

**Ratio:** The commercial wisdom of the Committee of Creditors (CoC) is paramount in approving a

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**Reasoning:** The NCLAT reasoned that the Adjudicating Authority's jurisdiction is confined to

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**Interpretation:** This issue involves interpreting the interplay between the IBC, NHB Act, and

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**Application:** The NCLAT applied the ratio by holding that the Adjudicating Authority did not

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## Parties

- **Judges:** M. Venu…; V. P. S…; +1 more
- **Appellants:** Vinay Kumar…
- **Respondents:** Dewan Housing…

## Timeline

- **2019-01-01 — Initiation…**: CIRP initiated against Dewan Housing…
- **2021-06-07 — Impugned Order…**: Adjudicating Authority/National Company Law Tribunal, Mumbai Bench, passed a common…

## 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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