HDFC Ltd has taken the holding company of Malvinder and Shivinder Singh to bankruptcy court to recover outstanding dues worth Rs 41.1crore.
The National Company Law Tribunal (NCLT) asked the company, RHC Holding Pvt, on June 14 to state why insolvency proceedings should not be initiated against it and decided to take up the matter on July 25.
RHC suggested the development is the result of an unfavourable ruling for the Singh brothers in a legal battle against Japanese drugmaker Daiichi Sankyo.
“Unfortunately, the adverse ruling against the promoters in the Daiichi Sankyo arbitration case has compounded problems, leading to severe liquidity pressures, which has triggered unanticipated defaults with banks and lenders,” an RHC spokesperson told ETin an email on Thursday.
HDFC, the country’s biggest housing finance company, lent RHC Rs 200 crore in April 2016 and claims the company defaulted after paying interest on the outstanding principal amount on time for the first quarter, according to court filings ET viewed.
RHC failed to meet its obligations to repay the entire principal amount with interest at the end of the 12-month term that was stipulated in HDFC’s agreement for the loan, according to the lender’s application.
Source: July 13, 2018, Economic Times