Wadhawan moves to SC, challenges NCLAT stay on DHFL

Mumbai Wadhawan has moved to Supreme Court on Tuesday, challenging NCLAT stay on Dewan Housing Finance Corporation Ltd (DHFL). It was on 25 May when NCLAT had stayed an NCLT order asking DHFL's Committee of Creditors to consider Wadhwan's Rs 91,000-crore settlement offer Kapil Wadhwan, former promoter of DHFL, has filed a plea in the Supreme Court challenging the order by the National Company Appellate Law Tribunal (NCLAT).

The NCLAT had stayed the National Company Law Tribunal (NCLT) order, which had asked lenders to consider a settlement offer by Wadhawan. A source said that Wadhawan has filed a plea in the Supreme Court on May 31. No date for hearing has been posted as of now. It had also said the order should not come in the way of the NCLT's decision on the resolution plan submitted for approval. The Supreme Court has listed the matter for hearing on June 25. Earlier, Piramal group had filed application in NCLAT on DHFL. "There would be no end if such reversals are allowed. There is no dispute regarding the fact that the Resolution Plan has already been approved and is before the Adjudicating Authority," the NCLAT had said in its order on the plea filed by Union Bank of India on behalf of the Committee of Creditors.

Apart from the CoC, the Administrator of DHFL and Piramal Group have filed separate petitions with the NCLAT challenging the May 19 order of the NCLT. In its order, the NCLT had noted that Wadhawan's settlement proposal is substantially higher at over one-and-a-half times of the value of the highest bidder; the same needs due consideration by the Administrator and the CoC. "It appears that with the settlement proposal, thousands of small investors, fixed deposit holders would be paid fully, thereby, thousands of small investors would get 100 per cent of their principal sum outstanding," it had held.

In his second settlement offer, Wadhawan had offered Rs 91,158 crore, which is over Rs 50,000 crore more than the Rs 34,250 crore being offered by Piramal Enterprises. Kapil Wadhawan is currently in jail, facing charges of money laundering that are under investigation by the Central Bureau of Investigation and the Enforcement Directorate. The RBI-appointed Administrator of DHFL has also separately filed cases of fraud to the tune of Rs 46,000 crores so far against Wadhawan at the NCLT.