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Supreme Court stays NCLAT order in DHFL case

The Supreme Court on Monday issued notice and stayed the order of the National Company Law Appellate Tribunal (NCLAT) directing the Committee of Creditors (CoC) to consider petition of 63 Moons against Piramal ascribing Re 1 value to Rs 40,000 crore worth of recoverable assets in the Dewan Housing Finance Corporation Limited (DHFL) case. 

A bench led by Chief Justice of India Justice N.V. Ramana, and Justices Krishna Murari and Hima Kohli was hearing the appeal by the Piramal Capital and Housing Finance Limited (Formerly known as DHFL). 

The matter would now be heard on May 5, 2022. The 63 moons had filed a petition in NCLAT against Piramal ascribing Re 1 value to Rs 40,000 crore worth of recoverable assets in the DHFL case. In this case, NCLAT had ordered the petition to be considered by the Committee of Creditors (CoC). 63 moons had NCD of the face value of Rs 200 crore in DHFL.

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With this order, the CoC have to reconsider the provision of Section 66 of Insolvency and Bankruptcy Code which mandates that the benefit should go to all the creditors of DHFL. However, the CoC had, in its resolution plan, overlooked this provision to the benefit of Piramal Group.

If CoC considers this without alteration of provision of Section 66 of IBC, all creditors of DHFL will be benefited. 63 Moons is the only company which challenged the decision of CoC in NCLAT.

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It may be pointed out that in its resolution plan, Piramal had ascribed Re 1 value against Rs 40,000 crore assets that has been fraudulently diverted by erstwhile promoters of DHFL. With 63 Moons’ efforts, lakhs of creditors will stand to benefit from this Rs 40,000 crore by way of recovery.

“63 Moons has full faith in Indian judiciary system and believes that Truth Shall Prevail”

-the Company said in its press statement.

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