NCLT admits Bankruptcy Resolution for DHFL

Published on December 05, 2019
Current context: The Mumbai bench of National Company Law Tribunal (NCLT) has admitted an RBI petition seeking bankruptcy resolution for Dewan Housing Finance (DHFL) under the Insolvency and Bankruptcy Code (IBC), 2016.
NCLT admits Bankruptcy Resolution for DHFL
  • RBI filed a plea under Rule 5 (a)(i) and Section 227 of IBC for bankruptcy proceedings to resolve the credit and liquidity crisis of the company.
  • Rule 5 (a) (i) of the Insolvency and Bankruptcy Rules, 2019 prescribes that Corporate Insolvency Resolution Process (CIRP) can be initiated against Financial Service Providers (FSP) committing default upon an application made by the Appropriate Regulator.
  • With the approval of the bankruptcy resolution, DHFL has become the first financial sector player (Non—bank lender) being for bankruptcy.
  • RBI has superseded DHFL’s Board on 20th Nov 19 and appointed R Subramaniakumar, former Managing Director and Chief Executive Officer of Indian Overseas Bank as DHFL Administrator.
  • The Reserve Bank had, on 22nd November 2019, constituted a three-member Advisory Committee to assist the Administrator of DHFL consisting:
    1. Dr Rajiv Lall, Non-Executive Chairman, IDFC First Bank Ltd.
    2. Shri N.S. Kannan, MD & CEO, ICICI Prudential Life Insurance Company Ltd.
    3. Shri N.S. Venkatesh, Chief Executive, Association of Mutual Funds in India.
  • Now, three-member Committee shall continue as the Advisory Committee to advise the Administrator in the operations of the DHFL during the corporate insolvency resolution process.

Question: 

Q.1 Who was appointed as the administrator by the Reserve Bank of India (RBI) after it superseded DHFL’s Board?
a. J. Krishnan
b. R Subramaniakumar
c. K. Manikumar
d. S. Kumarswamy

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