Banks Took Shelter Of NCLAT In DHFL Case

Banks took shelter of NCLAT in DHFL case, said- If NCLT directive is implemented, it will have a far-reaching effect.

DHFL’s lender banks have filed a petition against the NCLT’s directive to the National Company Law Appellate Tribunal (NCLAT) directing the National Company Law Tribunal.

The Banks have appealed to reject this directive altogether. The National Company Law Tribunal (NCLT) had recently asked the company’s creditors committee to consider the offer made by the company’s promoter Kapil Wadhavan.

In the petition filed by the banks, the order of NCLT has been declared completely baseless and illegal. It has even been said that this order has been given without taking into consideration the situation and without any thought.

On May 19, the Mumbai Bench of NCLT ordered that the settlement offer given by DHFL promoter Kapil Wadhawan should be voted on among all creditors.

While the offer is more than the Piramal Group’s offer for DHFL’s assets, banks say that the promoter’s intention behind this should be taken care of.

Banks are not confident that the promoter can arrange such a large amount. At the same time, he can also propose to further delay the insolvency process.

Starting the voting process once on Kapil Wadhavan’s proposal would mean putting the Piramal Group’s proposal on hold for a long time.

Sources say that the RBI and the finance ministry also want to see the DHFL insolvency process completed at the earliest and both these institutions are also not in favor of pursuing the NCLT order.

There is already a case of money laundering and scam against DHFL promoter Kapil Wadhawan.

In fact, the government created the Insolvency and Bankruptcy Code (IBC) so that the insolvency process is completed quickly. But such decisions seem to be stalling in the way of these objectives.