Kapil Wadhawan Challenges Insolvency Proceedings - NCLAT

New Delhi, Jul 1 (PTI) Kapil Wadhawan, erstwhile promoter of Dewan Housing Finance (DHFL), has moved the appellate tribunal NCLAT to challenge the NCLT order to initiate personal insolvency proceedings against him.

Wadhawan has challenged an earlier order passed by the Mumbai bench of the National Company Law Tribunal (NCLT), which on April 2, directed to initiate of personal insolvency proceedings against him over the Union Bank plea.

The matter was listed before a two-member bench of the National Company Law Appellate Tribunal (NCLAT), which has been adjourned to July 18 for the hearing.

Earlier, the insolvency tribunal NCLT also appointed Devendra Mehta as the resolution professional (RP) to collate the claims of lenders and compute the personal assets of Wadhawan.

Wadhawan was the guarantor of the loans taken by DHFL, which had availed various term loan facilities of over Rs 4,000 crore and working capital facilities of Rs 450 crore.

After defaults, the NCLT directed to initiate insolvency proceedings against DHFL in November 2019.

Subsequently, the debt-ridden firm was acquired by Piramal Capital for Rs 34,250 crore and merged into itself subsequently.

The creditors of DHFL had recovered an aggregate amount of Rs 38,000 crore from the resolution process at the time of approval of the plan.

The Insolvency and Bankruptcy Code allows personal guarantors to be directly subject to insolvency proceedings.

Earlier in April this year, the NCLT had directed to initiate insolvency proceedings against media baron Subhash Chandra over a plea by Indiabulls Housing Finance.