TaxTMI 
TaxTMI 
2022 (2) TMI 622
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....stub Narendran, Ms Samriddhi Shukla, Ms Lisa Mishra and Mr Vishal Hablani, Advocates for Intervenor (Piramal Capital & Housing Finance Ltd., SRA). Mr Tushar Mehta, SGI with Mr Raunak Dhillon, Mr Animesh Bisht, Ms Saloni Kapadia, Ms Madhavi Khanna, Mr Shubhankar Jain, Ms Isha Malik and Ms Fatema Kachwalla Advocates for COC. Mr Ashish S. Kamat and Mr M.F. Philip, Advocates for R-3/RBI. JUDGMENT ( Virtual Mode ) [ Per; V. P. Singh, Member (T) ] 1. This Appeal emanates against the Order dated 07 June 2021 passed by the National Company Law Tribunal, Mumbai, Bench II ("Adjudicating Authority"), in Interlocutory Application No. 449 of 2021, in Company Petition (IB) No. 4258/MB/C-11/2019 ("Impugned Order"), whereby the Adjudicating Aut....
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....ate in the deliberation of the CoC; b) The Appellant was not even furnished with a copy of the Resolution Plan despite seeking it; c) The Respondent Nos. 1 and 2 refused to even table and consider a Settlement Proposal forwarded by the Appellant, which would have offered Rs. 53,000 crores more than the Resolution Plan sanctioned and would have paid all creditors their principal in full instead of the haircut over 60% presently proposed; d) The public depositors and the debenture holders have not even been furnished with a copy of the Settlement Proposal; 3. Non-consideration of the 2nd Settlement Proposal of the Appellant by which, the Appellant has offered approx. Rs. 91,158 crores, i.e. approximate Rs. 53,000....
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....en years, DHFL would realise a sum over Rs. Forty thousand crores from its retail book (persons who have taken small home loans), even while calculating a conservative rate of interest of 10% for seven years on the retail assets of DHFL of about Rs. 30,000 crores. The realisation from these loans is almost 100%. c. DHFL also has investments that can be recovered and valued at about Rs. 3000 crores. d. The real estate assets in DHFL are worth almost 1000 crores. 5. From the indisputable facts set out above, it is apparent that just the existing cash available in DHFL and the recovery from the retail book and the investments alone would ensure at least Rs. 60,000 crores to the creditors (without even taking into account t....
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....on of such financial assets, SBI Capital Markets (a wholly-owned investment subsidiary of SBI, one of the lead members of Respondent No.2) and Ernst & Young, who even today continue to be the advisors to Respondent Nos. 1 and 2 had formulated a financial package for revival in the year 2019. There is no explanation whatsoever forthcoming as to how in less than a year, the valuation of DHFL has depleted so drastically for Respondent Nos. 1 and 2 to proceed ahead with a Resolution Plan, which is not even remotely close to the value of DHFL as determined in 2019. 7. It is further submitted that how the entire CIRP is conducted, apart from being aimed at irretrievably prejudicing the Appellant, is also completely contrary to the public inter....
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....uthorities (who are today involved in the CIRP of a financial service provider) to act for a high person, who are aimed at ensuring profits rather than being genuinely interested in a Resolution of a company and/or its stakeholders including thousands of public depositors. 10. The public depositors include persons who have deposited their life savings and hard-earned monies with DHFL, which is a deposit accepting Company under the purview of the National Housing Bank Act. As such, Respondent Nos. 1 and 2 ought to have ensured that the assets and business of DHFL are not frittered away in such a manner. Respondent No. 1 as a public officer and Respondent No.2 led by the public sector Banks have abused their position and defeated the pr....
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....application of the promoter, the Adjudicating Authority had directed the COC to consider the 2nd settlement plan. The said Order was challenged in Company Appeal (AT) (insolvency) No. 370, 376-377 and 393 of 2021. These Appeal has been allowed by this Appellate Tribunal and impugned Order dated 19 May 2021 directing the Administrator of the DHFL to place the 2nd settlement proposal of Kapil Wadhawan before the COC for consideration decision, and voting has been set aside. This judgement is also reported in 2022 SCC online NCLAT 40. Therefore, this issue does not remain pending for our consideration in the present Appeal. 15. The Appellant has also raised the issue that he was kept indoor throughout the CIRP and never provided a copy of t....