The National Company Law Appellate Tribunal (NCLAT) has refused to grant a stay on the implementation on Piramal Capital and Housing Finance Ltd's resolution plan for troubled mortgage lender Dewan Housing Finance Ltd (DHFL). Mumbai-based financial services company 63 moons technologies Ltd had opposed the resolution plan of Piramal group and moved NCLAT.
"It's a matter of law and we cannot pass an interim order on the approved resolution plan," NCLAT said.
The appellate tribunal has allowed Piramal and the committee of creditors (CoC) to proceed with the implementation of the resolution plan. This might come as a relief to the banks, other lenders and Piramal group who are seeking to expedite the implementation of the resolution plan.
63 moons holds over Rs200 crore worth of non-convertible debentures (NCDs) in the DHFL.
Earlier this month, 63 moons technologies had moved NCLAT, challenging approval given by National Company Law Tribunal's (NCLT) for Piramal's resolution plan. The company had sought interim protection from NCLAT, saying that the implementation of the resolution plan was subject to NCLAT’s approval.
Separately, all decks seem to have now been cleared for Piramal’s acquisition of DHFL. On Wednesday, debenture trustee Catalyst Trusteeship Ltd sent emails to all NCD-holders asking them “to ensure that their updated personal information is recorded in the list of debenture holders (BENPOS)”.
Sources say this might be a big hint that the NCD holders and other lenders might soon get their payment from Piramal Capital and Housing Finance Ltd as per the approved resolution plan.
The debenture trustee has put the blame squarely on NCD holders and held them accountable by saying “…it is observed that even after repetitive requests from Catalyst and DHFL, effective steps have not been taken by some of the debenture holders.”
Several readers were also writing to Moneylife requesting for details of whom to approach if they are not receiving mails from the debenture trustee.
As per the email by Catalyst, debenture holders have been requested to update their email IDs and check spellings, domain name, and bank account details with their depository participants (DP) through client master list.
As an NCD holder, if your email ID is already registered, do follow below steps to get your email ID reflected in BENPOS:
1. For CDSL- Request your DP to enable email D/L flag option.
2. For NSDL- Request your DP to enable flag to receive all communications from DHFL and RTA, in electronic form.
Further, it is also requested to check correctness of bank account details and address.
The debenture trustee also mentioned that even if the NCD holders have completed this procedure, they are requested to confirm once again with their DP.
If case NCD holders are holding DHFL debentures in physical form, they need to contact concerned registrar and transfer agent (RTA) and provide required know your customer (KYC) for updating correct email ID, account details and address.
As per prospectus issued by DHFL under public issues, the RTA is - Karvy Computershare Pvt Ltd and its email ID is [email protected]
The mail also clarified that NCD holders must note that their email ID, bank account details and address are to be updated and checked with their respective DP/RTA only and same shall not be updated by the debenture trustee.
The debenture trustees have sent a new mail on 26th July 2021 with the correct email address for RTA- [email protected] . Accordingly the article has been updated to reflect the correct email address for RTA.
The article has been updated to reflect the correct email address for RTA.