MUMBAI : An appeals court on Tuesday stayed a bankruptcy tribunal order that directed lenders to Dewan Housing Finance Corp. Ltd to consider a proposal by Kapil Wadhawan, the former promoter of the insolvent mortgage lender. NCLAT said the appeal should not delay a resolution process currently underway, where the Ajay Piramal-led Piramal Group has received approval to acquire DHFL. In its appeal, the RBI-appointed administrator has termed the NCLT’s order as “illegal and in breach of the settled provision of law". The consortium of creditors, in its appeal, said the NCLT order was passed without any jurisdiction as there is no such provision in law or, more specifically, under the Insolvency and Bankruptcy Code (IBC). Lenders said the NCLT order may set a bad precedent, with more promoters moving the court to consider their offer.

Source: Mint May 25, 2021 18:22 UTC