# In the matter of Vinay Kumar Mittal & Ors. Vs. Dewan Housing Finance Corporation Ltd. & Ors. Civil Appeal No. 654-660 of 2020

> SC judgment dated 2020-01-31. Citation: TCN-2020-SC-00072. The appeals were filed against interim orders passed by the High Court of Judicature at Bombay.…

- **Court:** SC
- **Order date:** 31 Jan 2020
- **Citation:** TCN-2020-SC-00072
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/vinay-kumar-mittal-ors-vs-dewan-housing-finance-corporation-ltd-ors-civil-appeal-55263817

## Summary

### Background

The appeals were filed against interim orders passed by the High Court of Judicature at Bombay. These orders related to Commercial Suit No.1034 of 2019, filed by Reliance Nippon Life Asset Management Ltd. (Respondent No.4) for recovery of a sum of Rs.479,31,29,113/- from Dewan Housing Finance Corporation Limited (DHFL, Respondent No.1). Respondent No.4 had subscribed to Non-Convertible Debentures (NCDs) of DHFL. The High Court had restrained Respondent No.1 from making further payments to unsecured creditors. The Appellants, who are depositors with DHFL, challenged the High Court's orders restraining DHFL from making payments towards their fixed deposits. The Reserve Bank of India (RBI) filed an application before the NCLT to initiate the Corporate Insolvency

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## Facts

Reliance Nippon Life Asset Management Ltd. (Respondent No.4) filed Commercial Suit No.1034 of 2019 against Dewan Housing Finance Corporation Limited (DHFL, Respondent No.1) for recovery of Rs.479,31,29,113/- due to DHFL's failure to redeem Non-Convertible Debentures (NCDs) subscribed by Respondent No.4. The High Court of Judicature at Bombay restrained Respondent No.1 from making payments to unsecured creditors. The Appellants, depositors with DHFL, challenged these orders. The Reserve Bank of India (RBI) initiated Corporate Insolvency Resolution Process (CIRP) against DHFL under Section 227 and 239(2)(zk) of the Insolvency and Bankruptcy Code, 2016 (IBC). The NCLT imposed a moratorium under Section 14 of the IBC, prohibiting suits against DHFL. The RBI appointed Mr.R.

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## Issues and analysis

### Issue 1: Whether the repayments of the deposits of the Appellants should be given preference over the …

**Ratio:** The court did not explicitly rule on whether the deposits should be given preference, but

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**Reasoning:** The court noted that the matter was before the Committee of Creditors and the

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**Interpretation:** The court recognized the importance of protecting the interests of the

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**Application:** The Appellants were allowed to raise their concerns before the Committee of

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## Parties

- **Judges:** L. Nageswa…; DEEPAK…
- **Appellants:** Vinay Kumar…
- **Respondents:** Dewan Housing…; Dewan Housing…

## Timeline

- **2019-09-30 — High Court…**: The High Court of Judicature at Bombay restrained Respondent No.1 from making further…
- **2019-10-10 — High Court…**: The High Court directed the continuance of the order passed on 30.09.2019 till the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 227 — Power of Central Government to notify financial…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-227)

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