PIRAMAL CAPITAL AND HOUSING FINANCE LIMITED (FORMERLY KNOWN AS DEWAN HOUSING FINANCE CORPORATION LIMITED) versus 63 MOONS TECHNOLOGIES LIMITED & OTHERS

PIRAMAL CAPITAL AND HOUSING FINANCE LIMITED (FORMERLY KNOWN AS DEWAN HOUSING FINANCE CORPORATION LIMITED) versus 63 MOONS TECHNOLOGIES LIMITED & OTHERS

The NCLAT transgressed its limited appellate jurisdiction under s.61 by modifying an approved resolution plan to set aside the clause allocating s.66 recoveries to the SRA. The CoC's commercial decision—approved by requisite votes and the NCLT—must be respected where the plan meets s.30(2) requirements; authorised representatives' votes bind their classes. Avoidance Applications under Chapter III and s.66 applications under Chapter VI are distinct and NCLT must decide each category under the respective provisions; s.66 recoveries may be appropriated by the SRA if the plan so provides and the statutory requirements are met.

Parties
Appellant / Successful Resolution Applicant: Piramal Capital and Housing Finance Limited (Formerly Known as Dewan Housing Finance Corporation Limited); Respondent / Non Convertible Debenture Holder: 63 Moons Technologies Limited; Appellant / Ex Promoter and Erstwhile Director: Kapil Wadhawan
Jurisdiction
India
Judgment Date
31 March 2025
Procedural Posture
Civil Appeal / Final Judgment on Appeals From NCLAT and NCLT Orders (disposal Dated 01 April 2025)
Outcome
In part allowed: NCLAT order dated 27.01.2022 set aside and NCLT order dated 07.06.2021 approving the Resolution Plan upheld; NCLT directed to decide Avoidance Applications under ss.43,45,50 and s.66 applications separately; various appeals against NCLAT decisions were allowed or dismissed as specified below.
Legal Topics
Resolution Plan Approval and S.30(2) Requirements, Avoidance Applications (ss.43, 45, 50) Vs S.66 Fraudulent/wrongful Trading, Committee of Creditors Commercial Wisdom and Scope of Judicial Review, Supersession of Board of Directors Under RBI Act, Rights of Fixed Deposit Holders and Treatment of Deposits
Insolvency and Bankruptcy Banking and Financial Regulation Company Law Resolution Plan Approval and S.30(2) Requirements Avoidance Applications (ss.43,45,50) Vs S.66 Fraudulent/wrongful Trading Committee of Creditors Commercial Wisdom and Scope of Judicial Review Supersession of Board of Directors Under RBI Act Rights of Fixed Deposit Holders and Treatment of Deposits

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Parties

Piramal Capital and Housing Finance Limited (Formerly Known as Dewan Housing Finance Corporation Limited)

Appellant / Successful Resolution Applicant

63 Moons Technologies Limited

Respondent / Non Convertible Debenture Holder

Kapil Wadhawan

Appellant / Ex Promoter and Erstwhile Director

Procedural Posture

Civil Appeal / Final Judgment on Appeals From NCLAT and NCLT Orders (disposal Dated 01 April 2025)

Legal Issues

  1. 1 Whether the Resolution Plan approved by the CoC and NCLT contravened any law requiring NCLAT to interfere under s.61 IBC
  2. 2 Whether NCLAT should have entertained appeals by certain creditors and modified an approved Resolution Plan
  3. 3 Whether recoveries from avoidance/fraud applications (Chapter III ss.43/45/50 and s.66 Chapter VI) should enure to creditors or to the Successful Resolution Applicant

Ratio Decidendi

The NCLAT transgressed its limited appellate jurisdiction under s.61 by modifying an approved resolution plan to set aside the clause allocating s.66 recoveries to the SRA. The CoC's commercial decision—approved by requisite votes and the NCLT—must be respected where the plan meets s.30(2) requirements; authorised representatives' votes bind their classes. Avoidance Applications under Chapter III and s.66 applications under Chapter VI are distinct and NCLT must decide each category under the respective provisions; s.66 recoveries may be appropriated by the SRA if the plan so provides and the statutory requirements are met.

Court Disposition

In part allowed: NCLAT order dated 27.01.2022 set aside and NCLT order dated 07.06.2021 approving the Resolution Plan upheld; NCLT directed to decide Avoidance Applications under ss.43,45,50 and s.66 applications separately; various appeals against NCLAT decisions were allowed or dismissed as specified below.

Orders

  • Set aside the NCLAT common judgment and order dated 27.01.2022 in Company Appeal Nos. 454-455 and 750 of 2021
  • Uphold NCLT order dated 07.06.2021 approving the Resolution Plan submitted by Piramal Capital and Housing Finance Limited