The Piramal Group today said that it is planning to file an appeal in the Supreme Court against an order by the National Company Law Appellate Tribunal (NCLAT) which sent back its winning bid for DHFL to the latter’s lenders for reconsidering the valuation.

The NCLAT on Thursday, while delivering a judgement on a petition by 63 Moons Technologies had directed the lenders of DHFL to reconsider their decision regarding the valuation of the financial firm's avoidable transactions, while approving the insolvency resolution plan submitted by Piramal Capital & Housing Finance Ltd.

While Piramal Capital had emerged as the winning bidder for DHFL, the Committee of Creditors (CoC) had ascribed a value of just Re 1 for Rs 45,000 crore-worth recoverable assets of DHFL. These were assets apparently diverted fraudulently by the erstwhile promoters of DHFL.

In a statement today, Piramal Capital & Housing Finance Ltd said that “the Dewan Housing Finance Corporation Ltd (DHFL) acquisition by Piramal Group remains unaffected and the business integration continues as envisaged”.

“We have analysed the detailed judgment of the NCLAT and consulted our legal advisors. We are confident and will continue to pursue the matter as multiple legal options are available to us for our future course of action, including approaching the apex court,” the statement from Piramal Capital & Housing Finance Ltd (formerly known as DHFL) added.

NCLAT had sent the approved resolution plan back to the CoC in order to reconsider the aspect of the valuation of avoidable transactions that pertain to the recoverable assets. Under the Insolvency and Bankruptcy Code (IBC), avoidance transactions are those which are identified as undervalued, fraudulent or extortionate by the former promoters.

The resolution plan, which was voted in favour by the CoC, was approved by the Mumbai bench of the National Company Law Tribunal (NCLT) on June 7, 2021. As per the plan, a notional value of Re 1 was given for all recoveries under Section 66 of the IBC whereby applications for recovery of assets worth over Rs 45,000 crore was filed by DHFL administrator. Section 66, pertains to transactions in connection with fraudulent trading.