The Supreme Court on Monday refused to stay the implementation of DHFL Resolution Plan on the plea filed by 63 moons technologies and directed the National Company Law Appellate Tribunal (NCLAT) to hear the issue expeditiously.
63 moons, which holds non-convertible debentures (NCDs) worth over Rs 200 crore issued by DHFL, had challenged the NCLAT’s judgment on the grounds that the current resolution plan was “disappointing” for NCD holders.
63 moons said the apex court has directed the NCLAT to hear its appeal against Piramal Group’s resolution plan within a period of two months.
In a statement, the Mumbai-based fintech company said its appeal challenged the Resolution Plan of Piramal which ascribed Re 1 to Rs 45,000 crore recoveries from Wadhawans which would ultimately go to Piramal.
At the NCLAT, 63 moons questioned the legality of Piramal’s Resolution Plan for DHFL where Piramal may be able to potentially pocket Rs 45,000 crore that may be recovered from the Wadhawans and their associates.
However, the NCLAT did not stay the implementation of the DHFL Resolution Plan.
Notably, the NCLAT has not interfered at the interim stage and did not pass an interim order on the approved resolution plan.
At the NCLAT, 63 moons has sought that the fraudulent transaction recovery benefit of approximately Rs 45,000 crore filed by the DHFL administrator under Section 66 of IBC should come to creditors, including NCD holders who are the actual sufferers of the default, and not to the buyer of the company.
The Mumbai bench of the NCLT approved the Piramal Group’s resolution plan for DHFL.