Former directors of Dewan Housing Finance Corporation Ltd on Wednesday filed an application in the National Company Law Tribunal seeking participation in the committee of creditors’ (CoC) meetings.
The DHFL former directors were denied participation in the CoC meetings as its board was superseded by the Reserve Bank of India (RBI) in November 2019.
The participation in the CoC meetings cannot be allowed as the insolvency process was initiated by the RBI, the counsel representing the administrator said.
The tribunal directed the administrator to file a reply in this regard before February 19. Meanwhile, last week, the Uttar Pradesh Power Corporation Contributory Provident Fund Trust had moved NCLT to recover dues from DHFL.
The trust, which manages the power corporation’s provident fund, claimed that the non-bank lender owes it more than Rs 148 crore that it invested in DHFL’s fixed deposits.
NCLT directed the administrator two weeks’ time to file a reply after the CoC meeting. DHFL became the first financial services company to be referred to the NCLT under new rules notified by the government on November 15, 2019.
In December 2019, NCLT had admitted the Reserve Bank of India’s petition to initiate insolvency proceedings against the financial services company. The tribunal also appointed R Subramaniakumar, the RBI-appointed administrator, as the resolution professional for the insolvency process of DHFL.
SOURCE: Business Standard, February 12, 2020.