New Delhi, Jun 8 (IANS): 63 moons technologies said on Tuesday that it will challenge the order of the National Company Law Tribunal (NCLT), permitting Piramal Group to take over DHFL under Insolvency and Bankruptcy Code and stated that the current resolution plan is contrary to law and against the interest of all DHFL's creditors, including NCD holders.

The administrator of DHFL has filed applications for recovery of almost Rs 45,000 crore under Section 66 of the IBC against DHFL's promoters and other persons on account of their fraud against the creditors.

63 moons contended that Rs 45,000 crore must come to the defrauded parties, which are the creditors. However, the Resolution Plan is drafted in such a way that it favours the resolution applicant (buyer) – the Piramal Group, allowing it to reap the benefits of recoveries from the promoters.

Ascribing a value of Re 1 to the recoveries of fraud where claims are in excess of Rs 45,000 crore creates unjust enrichment of the buyer (Piramal) at the cost of creditors.

Piramal has bid only for the current value of DHFL which does not include these amounts that were taken away fraudulently. Hence, all the more reason, the recoveries must come to the creditors only, it added.

63 moons, which holds more than Rs. 200 crore of Non-convertible debentures (NCDs) of DHFL, had filed an application in the NCLT-Mumbai seeking that the fraudulent transaction recovery benefit of approximately Rs. 45,000 crore filed by DHFL administrator under section 66 of IBC should come to creditors, including NCD holders who are the actual sufferers of the default, and not to the buyer of the company.

Strangely, the current DHFL resolution plan allows the Piramal Group to buy the company by paying mere Rs 37,500 crore as against the outstanding debt of Rs 85,000 crore. In addition to this, the benefits of claims of over Rs 45,000 crore are to be appropriated by Piramal fully by ascribing the entire recoverable amount a value of Re 1.

63 moons pointed out that the current resolution plan is disappointing for NCD holders in as much as they stand to bear the greatest loss as opposed to any other party involved. Other members of the Committee of Creditors, who comprise mainly banks, have recourse to personal guarantees of promoters whereas NCD holders do not have any such contractual recourse.

"NCD holders will be left high and dry with a massive 65 per cent to 75 per cent haircut, if in future such recoveries from fraudulent transactions are allowed to pass through to the resolution applicants, instead of the creditors," it noted.

"Should 63 moons succeed in challenging the NCLT order, it will benefit every bank and institution that is a member of the Committee of Creditors and has, surprisingly, given a collective go-ahead to the resolution plan. In short, the banks are happy with Rs. 37,500 crores offered by Piramal with a payment schedule spread out over 7 years while letting go of the recoveries in relation to claims in excess of Rs. 45,000 crore which should legally belong to the creditors," 63 moons added.

The company said it is awaiting the copy of the order and will be reviewing its options on the basis of advice from its legal advisors.