Wadhawan bid: DHFL lenders appeal against NCLT’s order
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Wadhawan bid: DHFL lenders appeal against NCLT’s order
TNN / Updated: May 25, 2021, 06:43 IST
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Kapil Wadhwan (File photo)
MUMBAI: The Reserve Bank of India-appointed administrator for DHFL has approached the appellate tribunal against the National Company Law Tribunal (NCLT) order on May 19 directing the committee of creditors to consider an offer made by the jailed promoter of DHFL Kapil Wadhawan.
According to banking sources, following the directions would undermine all the progress achieved towards the resolution of the case. Lenders said that there was no question of doing a one-time settlement with Wadhawan because that would involve the RBI withdrawing the case from NCLT, providing a bank guarantee for expenses incurred by administrator and 90% of the voters agreeing to a proposal that was not a valid one in the first place.
Shut the back door
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The National Company Law Appellate Tribunal on Tuesday stayed an order of the National Company Law Tribunal (NCLT) that had directed lenders of Dewan Housing Finance Corp. Ltd (DHFL), which went bust in 2019 and was pushed into bankruptcy proceedings, to consider a proposal by its promoter Kapil Wadhawan to repay the entire principal amount that was due to them through an upfront transfer and staggered payments over several years.
The stay comes as a relief. It was awkward of the NCLT to have let Wadhawan get into the reckoning to acquire a financier that ran aground under his stewardship in the first place. Had he been able to regain control of DHFL, it would have set a precedent for other borrowers to take India’s bankruptcy code lightly. If owners can simply re-buy businesses relieved of some debt after defaulting on their obligations, the code could turn into a debt writing-off device. That would defeat its purpose, which is to place failed
Petitions filed in SC seeking extension of NCLT judges
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The dedicated insolvency courts are already witnessing an acute shortage of judges. The Supreme Court Monday listed the matter for hearing on May 31 as the apex court accorded two weeks to the Centre to complete the process of selection of judges to NC
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Half a dozen members will be completing their tenure of five years in May and June this year.
At least three petitions have been filed at the Supreme Court and the Madras High Court seeking extensions for the National Company Law Tribunal judges retiring in the next few weeks. The proposed extensions are aimed at preventing bankruptcy cases from piling up.
DHFL lenders challenge NCLT order on considering Wadhawan s offer
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Last Updated: May 24, 2021, 09:37 PM IST
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Synopsis An appeal challenging NCLT Mumbai bench s order has been filed before the National Company Law Appellate Tribunal (NCLAT) and is scheduled for hearing on Tuesday.
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The committee of creditors of DHFL has challenged the National Company Law Tribunal (NCLT) order directing the lenders to consider the offer by the debt-ridden mortgage firm s erstwhile promoter Kapil Wadhawan. An appeal challenging NCLT Mumbai bench s order has been filed before the National Company Law Appellate Tribunal (NCLAT) and is scheduled for hearing on Tuesday. The matter will be heard by a vacation bench of NCLAT comprising Acting Chairman Justice A I S Cheema and Member Technical V P Singh.
Residents of Mumbai’s World Crest Towers drag developer Lodha Group to bankruptcy court
May 24, 2021
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The World Crest society has, in its filing to the National Company Law Tribunal, said that Macrotech has failed to clear its dues of ₹7.2 crore
Residents of Mumbai-based World Crest World Towers, India’s tallest residential complex, have initiated bankruptcy proceedings against Macrotech Developers (erstwhile Lodha Group), which is among the country’s largest real-estate companies.
The World Crest society has, in its filing to the National Company Law Tribunal (NCLT), said that Macrotech has failed to clear its dues of ₹7.2 crore with regard to a sinking fund and other heads since 2019. The society, which counts several corporate honchos and top personalities as members, is demanding the dues from the developer with interest.