The National Company Law Tribunal's (NCLT) Mumbai bench on Monday admitted the RBI's application for the initiation of insolvency proceedings against the cash-strapped Dewan Housing Finance Corporation Ltd (DHFL).
The Reserve Bank of India had on Friday filed an application in the NCLT bench for initiation of the corporate insolvency resolution process. In a statement, the central bank had said that there would be a debt moratorium on DHFL as long as the insolvency process is on.
The apex bank filed the application for initiation of corporate insolvency resolution process against DHFL under several clauses of Section 227 and Section 239 of the Insolvency and Bankruptcy Code, 2016 along with provisions under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers) Rules, according to the statement.
The RBI appointed a committee to advise the administrator of the private sector lender after superseding the company's board of directors and appointing R. Subramaniakumar as its administrator on November 20.
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