SME Times News Bureau | 10 Jul, 2019
The National Company Law
Appellate Tribunal (NCLAT) on Wednesday rejected HDFC's insolvency plea
against the Malvinder and Shivinder Singh-promoted NBFC, RHC Holding Pvt
Ltd.
The two-member bench, headed by NCLAT Chairman Justice S.
J. Mukhopadhaya, upheld the order of the principal bench of the National
Company Law Tribunal (NCLT) which had rejected HDFC's plea, saying that
the appellate tribunal could not permit Insolvency and Bankruptcy Code
(IBC) proceedings against a provider of financial services.
The
NCALT order said that any claims of illegal receipt of deposits by RHC
Holdings should be placed before the Reserve Bank of India as
non-banking financial companies come under the central bank's
regulation.
HDFC moved the appellate tribunal after the NCLT
passed an order on December 6, 2018, observing that RHC Holding was an
NBFC and does not come under the purview of the IBC.
RHC
Holding had taken a loan of Rs 200 crore from HDFC in April 2016. It
paid the interest for the first quarter on time but later defaulted on
its dues. HDFC had sought insolvency proceedings against RHC Holding to
recover an unpaid amount of Rs 41 crore.
