Mumbai, Dec 31 (IANS): 63 Moons Technologies on Thursday said it has filed an application with the National Company Law Tribunal (NCLT), Mumbai, seeking that the benefit of avoidance applications for approximately Rs. 30,000 crore filed by DHFL administrator under section 66 of Insolvency and Bankruptcy Code (IBC) should come to the Committee of Creditors (CoC), including NCD holders, who are the actual sufferers of the default.
63 Moons stated that it held over Rs. 200 crore non-convertible debentures (NCD) of DHFL.
Presently, as per the resolution plans submitted by Resolution Applicants, the benefit or the recovery amount arising from the avoidance applications will go to Resolution Applicant. This same resolution plan has been put up for voting.
In a statement, the company said the application made by 63 Moons on Thursday came for hearing before the tribunal which adjourned the same to January 13, 2021 for final hearing, while directing the parties to complete pleadings.
63 Moons said it is hopeful that any clause in the resolution proposal, which is contrary to the Request For Proposal and IBC should be struck down by NCLT. However, the CoC opposed the application. This is perhaps because the majority of the CoC comprises banks, which will have recourse to personal guarantees by promoters in addition to the 30 to 35 per cent realization of principal under the proposed resolution plans.
While on the other hand, the NCD holders, who have no such recourse, will be left high and dry with only 30 to 35 per cent realization if future recoveries from fraudulent transactions are allowed to go to the resolution applicants, instead of the creditors.
In its application, 63 Moons has argued that the very purpose of IBC is to ensure the maximum realization of value for creditors and the same should be upheld. It remains to be seen whether other NCD holders join the fight to secure their rights as well, the statement added.
Notably, 63 Moons also filed civil and criminal cases against DHFL and Wadhawans, accusing them of fraud and siphoning off money. It had invested Rs. 218 crore in non-convertible debentures issued by DHFL on the assurance of a high rate of interest of over 9 per cent per annum, but the troubled firm allegedly failed to make any payment after 2016-17.