# In the matter of Dewan Housing Finance Corporation Limited IA 2431 of 2020 in CP (IB) 4258-MB-C-II-2019

> NCLT judgment dated 2021-05-19. Citation: TCN-2021-NCLT-02116. The case involves an application filed by Mr. Kapil Wadhawan, a promoter of Dewan Housing…

- **Court:** NCLT
- **Order date:** 19 May 2021
- **Citation:** TCN-2021-NCLT-02116
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dewan-housing-finance-corporation-limited-ia-2431-of-2020-in-cp-ib-4258-mb-c-ii-5846f538

## Summary

### Background

The case involves an application filed by Mr. Kapil Wadhawan, a promoter of Dewan Housing Finance Limited (DHFL), a Corporate Debtor undergoing Corporate Insolvency Resolution Process (CIRP). The application seeks directions to Respondent No. 3 (Reserve Bank of India - RBI), through Respondent No. 1 (Administrator of DHFL), to place settlement proposals made by the Applicant before Respondent No. 2 (Committee of Creditors - CoC) for consideration. The RBI had initiated CIRP against DHFL due to defaults in payment obligations and concerns over governance. The Applicant claims that his settlement proposals offer a higher value than the resolution plans received from other applicants and would ensure full repayment to creditors, particularly small investors. The CoC and

…

## Facts

1. Dewan Housing Finance Limited (DHFL) is undergoing Corporate Insolvency Resolution Process (CIRP) initiated by the Reserve Bank of India (RBI) due to defaults in payment obligations and governance concerns.
2. Mr. Kapil Wadhawan, a promoter of DHFL, filed an application seeking directions to the RBI and the Administrator of DHFL to place his settlement proposals before the Committee of Creditors (CoC).
3. The Applicant submitted two settlement proposals, one on December 13, 2020, and another on December 29, 2020, offering a higher value than the resolution plans received from other applicants.
4. The Applicant claims that his proposals would ensure full repayment to creditors, particularly small investors, and maximize the value of DHFL's assets.
5. The Administrator

…

## Issues and analysis

### Issue 1: Whether the NCLT has the power to direct the CoC to consider a settlement proposal submitted by a …

**Ratio:** The NCLT has the inherent power to make such orders as may be necessary for meeting the

…

**Reasoning:** The NCLT reasoned that it has the power to ensure that settlement proposals are duly

…

**Interpretation:** The NCLT interpreted its powers under the NCLT Rules and the I&B code to

…

**Application:** The NCLT applied this ratio to the specific facts of the case, noting that the

…

## Parties

- **Judges:** Harihar Prakash…; RavikumarDu…
- **Appellants:** Kapil Wad…
- **Respondents:** Dewan Housing…; The Administrator,…

## Timeline

- **2019-11-20 — RBI Supersedes DHFL…**: Reserve Bank of India (RBI) exercised powers under Section 45-IE of the Reserve Bank of…
- **2019-11-22 — RBI Constitutes…**: RBI constituted a three-member Advisory Committee to assist the Administrator in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/dewan-housing-finance-corporation-limited-ia-2431-of-2020-in-cp-ib-4258-mb-c-ii-5846f538