Kapil Wadhawan Fights Back: Appeals Against Personal Insolvency Proceedings

Kapil Wadhawan, former promoter of DHFL, has contested the NCLT order to begin personal insolvency proceedings against him in an appellate tribunal. The case has been deferred for a hearing on July 18. This comes after DHFL's acquisition by Piramal Capital, as part of a massive debt resolution process.

Kapil Wadhawan, erstwhile promoter of Dewan Housing Finance (DHFL), has taken legal steps to challenge a ruling by the National Company Law Tribunal (NCLT) at the appellate tribunal NCLAT. The order in question, issued on April 2, mandated the initiation of personal insolvency proceedings against Wadhawan following a plea by Union Bank.

The matter is now listed for further hearing on July 18 before a two-member bench of the National Company Law Appellate Tribunal (NCLAT). The original insolvency order also appointed Devendra Mehta as the resolution professional (RP) responsible for consolidating lender claims and tallying Wadhawan's personal assets.

Wadhawan had guaranteed loans amounting to over Rs 4,000 crore along with working capital facilities of Rs 450 crore for DHFL. The company defaulted, and insolvency proceedings were initiated in November 2019. Piramal Capital later acquired DHFL for Rs 34,250 crore, recovering an aggregate amount of Rs 38,000 crore from the resolution process. India's Insolvency and Bankruptcy Code permits personal guarantors to face insolvency proceedings directly. Another similar case involves media baron Subhash Chandra, who also faced insolvency proceedings earlier this year.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)