# In the matter of Dewan Housing Finance Corporation Limited

> NCLT judgment dated 2024-01-04. Citation: TCN-2024-NCLT-03326. The case involves an application under Section 60(5)(c) of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 4 Jan 2024
- **Citation:** TCN-2024-NCLT-03326
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dewan-housing-finance-corporation-limited-af23421c

## Summary

### Background

The case involves an application under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the NCLT Rules, 2016. The applicant sought to be permanently deleted from the array of respondent parties in Interlocutory Application (I.A.) No. 2524/2020, which is related to an avoidance application in Company Petition (CP(IB)) No. 4258/2019. The avoidance application was filed by the erstwhile Administrator of Dewan Housing Finance Corporation Limited (DHFL) and is now being prosecuted by Piramal Capital & Housing Finance Limited (PCHFL) after a merger and substitution. The applicant also sought a declaration that an action under Section 43 of the Code would not lie against it for the same transaction, given a prior order deleting the

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## Facts

The Reserve Bank of India (RBI) initiated a company petition against Dewan Housing Finance Corporation Limited (DHFL), the Corporate Debtor, which was admitted by the Tribunal. An Administrator was appointed. During the Corporate Insolvency Resolution Process (CIRP), the Administrator filed an Avoidance Application (IA) alleging fraudulent transactions between Black Rock Financial Services Private Limited (the Applicant) and DHFL, specifically under Sections 43 and 66 of the Insolvency and Bankruptcy Code (IBC). The Avoidance Application claimed DHFL fraudulently disbursed loans to the Applicant, who then transferred the funds to purchase non-convertible debentures of DHFL. Piramal Capital & Housing Finance Limited (PCHFL) took over DHFL through a resolution plan

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## Issues and analysis

### Issue 1: Whether the Applicant should be deleted from the array of respondent parties in I.A. No. 2524 of …

**Ratio:** The presence of a party is necessary for the effective adjudication of a matter,

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**Reasoning:** The Tribunal reasoned that the controversy involved in the application u/s 43 of the Code

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**Interpretation:** This means that all parties involved in the transaction should be present

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**Application:** Since the Applicant was a party to the transaction, its presence would be

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## Parties

- **Judges:** Kuldip Kumar…; ANIL RAJ C…
- **Appellants:** Black Rock…
- **Respondents:** Dewan Housing…; PIRAMAL CAPITAL &…

## Timeline

- **2019-01-01 — Company Petition (IB)…**: Company Petition (IB)…
- **2020-01-01 — Interlocutory…**: Interlocutory Application…

## 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)

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