# In the matter of Dewan Housing Finance Corporation Limited IA No. 721 & 2852 of 2021, IA No. 532 of 2022 in CP (IB) No. 4258-(MB)-2019

> NCLT judgment dated 2023-02-09. Citation: TCN-2023-NCLT-04694. The case involves an application for the substitution of the applicant in I.A. No. 721 of 2021,…

- **Court:** NCLT
- **Order date:** 9 Feb 2023
- **Citation:** TCN-2023-NCLT-04694
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dewan-housing-finance-corporation-limited-ia-no-721-2852-of-2021-ia-no-532-of-20-cf18dcd7

## Summary

### Background

The case involves an application for the substitution of the applicant in I.A. No. 721 of 2021, originally filed by the Administrator of Dewan Housing Finance Corporation Limited (DHFL) seeking the avoidance of preferential transactions. The Reserve Bank of India (RBI) had superseded the Board of Directors of DHFL due to governance concerns and defaults, initiating Corporate Insolvency Resolution Process (CIRP). Piramal Capital and Housing Finance Limited's resolution plan was approved, leading to a reverse merger and the creation of a new entity. The administrator filed I.A. No. 721 of 2021 under Sections 25(2)(j), 43, and 44 of the Insolvency and Bankruptcy Code, 2016, seeking to set aside preferential transactions. The Resolution Plan stipulated that the Resolution

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## Facts

The Reserve Bank of India (RBI) superseded the Board of Directors of Dewan Housing Finance Corporation Limited (DHFL) on November 20, 2019, due to governance concerns and defaults in meeting payment obligations. Mr. R. Subramaniakumar was appointed as the Administrator. Subsequently, RBI filed a Company Petition, C.P. (IB) No. 4258/MB/2019, initiating Corporate Insolvency Resolution Process (CIRP) against DHFL, which was admitted on December 3, 2019. The Tribunal confirmed the Administrator's appointment. Piramal Capital and Housing Finance Limited submitted a Resolution Plan, which was approved by the Committee of Creditors (CoC) with a majority of 93.65%. The Administrator filed an Application under Section 31 of the Code on February 24, 2021, seeking approval of the

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## Issues and analysis

### Issue 1: Whether the Applications under section 43, 45, …

**Ratio:** The IBC being a special statute endeavouring to ensure that the resolution process is

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**Reasoning:** The Tribunal relied on a judgment by the Delhi High Court in TATA Steel BSL ltd. vs.

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**Interpretation:** The interpretation is that avoidance applications, which seek to identify and

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**Application:** In this case, the Tribunal found that the Resolution Plan submitted by Piramal

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## Parties

- **Judges:** P.N. Deshmukh…; Shyam Babu…
- **Appellants:** Barclays Bank…
- **Respondents:** Dewan Housing…; Piramal Capital…

## Timeline

- **2019-11-20 — RBI Supersedes Board of…**: The Reserve Bank of India (RBI) superseded the Board of Directors of Dewan Housing…
- **2019-12-03 — CIRP Admi…**: The Tribunal admitted the Company Petition filed by RBI, initiating Corporate Insolvency…

## 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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