NCLT Appoints Committee to Manage DHFL during Transition Period
The National Company Law Tribunal (NCLT) has named a seven-member monitoring committee for interim management and control of Dewan Housing Finance (DHFL).
The committee will manage the struggling mortgage lender until Piramal Group’s resolution plan is implemented. NCLT had on June 7 approved Piramal Group’s overall resolution plan for DHFL, subject to a few conditions.
During the period between the date of the court approval and the implementation date, the management and control of the corporate debtor would vest with the Monitoring Committee.
The Monitoring Committee comprises three representatives nominated by the CoC, two representatives nominated by the Successful Resolution Applicant, the RBI-appointed Administrator, and a court-appointed “Observer Cum Permanent Invitee”.
NCLT named Ashok Kacker, retired Chief Commissioner of Income Tax and Former Executive Director of Sebi, as the observer and permanent invitee of the committee “to ensure smooth functioning and change over to the Successful Resolution Applicant.”
NCLT had on May 21 asked DHFL’s lenders to vote on former DHFL promoter Kapil Wadhawan’s settlement offer, an order that was stayed by the National Company Law Appellate Tribunal (NCLAT) on May 25. Subsequently, Wadhawan moved the Supreme Court against the NCLAT’s decision.