NCLAT units apart order that directed to contemplate Kapil Wadhawan’s 2nd supply

The National Company Law Appellate Tribunal (NCLAT) has put aside an earlier order of the Mumbai bench of the NCLT, which had directed the administrator of the debt-ridden DHFL to place the second settlement proposal by erstwhile promoter Kapil Wadhawan earlier than its lenders for consideration.
The appellate tribunal noticed that NCLT has handed instructions to contemplate the second proposal from Wadhawan, even supposing the Committee of Creditors (CoC) of DHFL had already by an amazing majority authorized the Piramal Capital & Housing Finance’s decision plan and the administrator had utilized earlier than it for its approval.
Citing a current judgement handed by the Supreme Court within the case of Ebix Singapore, the NCLAT stated “there was no scope for negotiations between the parties once the CoC has approved the resolution plan”.
“The said exercise was beyond the jurisdiction of the adjudicating authority (NCLT), hence unsustainable and liable to be set aside,” stated a three-member NCLAT bench in its judgement handed on January 27, 2022.
The NCLAT route came visiting a batch of petitions filed by Union Bank of India on behalf of the CoC, DHFL’s Administrator and Piramal Capital & Housing Finance — profitable decision applicant difficult NCLT order.
On May 19, 2021, the NCLT had directed the administrator of DHFL to position the second supply by Wadhwan earlier than CoC for consideration, choice, voting and to tell it inside 10 days. with pti