Company’s approved RP for DHFL can’t be subjected to statutory claims which weren’t known earlier: NCLAT grants relief to Piramal Capital [Read Order]

Company - RP - DHFL - statutory - NCLAT - Piramal Capital - Taxscan

In a relief to the  Piramal Capital, the National Company Law Appellate Tribunal (NCLAT), Delhi Bench ruled that the Company’s approved Resolution Plan for Dewan Housing Finance Corporation Ltd. (DHFL) cannot be subjected to statutory claims which were not known earlier.

The Appellant, Piramal Capital & Housing Finance Ltd. Successful Resolution Applicant filed the appeal against part of direction in impugned order dated 7th June, 2021 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench. The Appellant has challenged the impugned order limited to the direction which reads, “The approval of the Resolution Plan shall not be construed as waiver of any statutory obligations/ liabilities of the Corporate Debtor and shall be dealt by the appropriate Authorities in accordance with law. Any waiver sought in the Resolution Plan, shall be subject to approval by the Authorities concerned in the light of the decision of Supreme Court in the matter of Ghanshyam Mishra and sons vs. Edelweiss Asset Reconstruction Company Limited.”

Dr. Abhishek Manu Singhvi, the counsel for the appellant this Para requires clarification as although the Para refers to decision in the judgment of ‘Ghanshyam Mishra and Sons Pvt. Ltd. vs. Edelweiss Asset Reconstruction Company Limited. & Ors.’, the directions are not in consonance with the directions issued by the Supreme Court in the matter of ‘Ghanshyam Mishra’. It is argued that, rather contrary, requiring Appellant to approach individual authorities to extinguish statutory liability/obligations.

The Administrator submitted that the submissions being made by the Counsel for the Appellant he agrees with the same and it is necessary that there should not be any confusion in the implementation of the Resolution Plan which has been approved.

The Committee of Creditors (CoC) submits that the CoC is concerned with the fact that the Successful Resolution Applicant should not have any excuse for not duly and completely executing the Resolution Plan which has been approved by the CoC.

The coram of the Officiating Chairperson, Justice A.I.S. Cheema and Technical Member, Dr. Alok Srivastava substituted the direction in place of Para (ii) of the Operative Order of impugned order, which now reads “all the dues including the statutory dues owed to the Central Government, any State Government or any local authority, if not part of the resolution plan, shall stand extinguished and no proceedings in respect of such dues for the period prior to the date the Adjudicating Authority was granting its approval under Section 31 could be continued.”

Subscribe Taxscan AdFree to view the Judgment

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.

Related Stories