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Business Standard
a day ago
- Business
- Business Standard
NCLT declares Kapil Wadhawan bankrupt; what's next for DHFL's ex-promoter
The National Company Law Tribunal (NCLT), Mumbai, on Monday declared Kapil Wadhawan, the former promoter and personal guarantor of Dewan Housing Finance Corporation Ltd (DHFL), bankrupt following a plea by Union Bank of India over a Rs 4546 crore default. According to experts, the bankruptcy order carries sweeping professional and personal consequences for Wadhawan. What does it mean for Wadhawan and DHFL? The tribunal has directed Wadhawan to file his financial statement with Bankruptcy Trustee Sanjay Kumar Mishra, nominated by Union Bank of India and appointed by the tribunal. This order follows creditors' decision in their September 2024 meeting to end the insolvency resolution process against Wadhawan due to his failure to submit a repayment plan, opting instead for bankruptcy. 'The declaration against Kapil Wadhawan follows the earlier ruling on Neeraj Wadhawan in March 2024. This concludes a lengthy legal process initiated by Union Bank. Following the appointment of a bankruptcy trustee, Wadhawan's assets will be controlled and liquidated for creditor satisfaction. He will be required to cooperate fully and provide complete details of his affairs and assets. Importantly, he will be barred from acting as a director, entering into contracts, and travelling abroad without permission,' said Parth Contractor, Founder of Chambers of Parth Contractor. Rahul Hingmire, Managing Partner of Vis Legis Law Practice, explained that the order formalises Wadhawan's liability as a guarantor. 'By virtue of Sections 128 and 154 of the Insolvency and Bankruptcy Code (IBC), his estate now vests in the bankruptcy trustee, stripping him of control. This legally brands him insolvent, restricts his access to credit, and adds to the impact of SEBI's five-year market ban,' he said. Sections 128 and 154 of the IBC address the impact of bankruptcy on a guarantor's estate, ensuring that the bankrupt's assets are transferred to the trustee. Union Bank filed the case in December 2020 after DHFL defaulted on loans exceeding Rs 39,582 crore, guaranteed by Wadhawan under a 2019 deed of guarantee. The NCLT admitted the petition in April 2024; Wadhawan's appeal before the appellate tribunal (NCLAT) was dismissed in August, and the case is now pending before the Supreme Court. Hingmire further noted that personal insolvency under the IBC typically leads to asset liquidation for creditor recovery, as courts have consistently upheld that guarantors' liability matches that of the borrower. 'The debtor must file a statement of affairs, which the trustee reviews before liquidating assets and distributing proceeds. While repayment plans under Section 105 are possible, asset liquidation is the usual course, ensuring creditors' recovery,' he added. What lies ahead for DHFL and Wadhawan? Wadhawan is now required to disclose his complete financial position, including the assets in his name and those of his immediate family members, along with liabilities from the past three years, within seven days of the bankruptcy order. The entire estate, including all assets belonging to him, will now vest with the bankruptcy trustee appointed by the NCLT, explained Rishabh Sharma, Counsel at DMD Advocates. On the possibility of an appeal, Shiv Sapra, Partner at Kochhar & Co, noted that relief seems unlikely. 'While an appeal is possible, given the background and the failure to submit a repayment plan, it's unlikely that relief will be granted. The situation would have been different if a plan had been submitted and rejected or not considered,' Sapra said. Other Cases Legal commentators note that this order adds to the growing list of personal insolvency cases against promoters and guarantors under the IBC, strengthening creditors' ability to pursue recovery. 'Subhash Chandra of Essel Group faced proceedings initiated by Indiabulls Housing Finance Ltd., while Anil Ambani of Reliance Communications faced insolvency triggered by the State Bank of India for corporate debt guarantees. More recently, GVK Energy Limited entered insolvency after IDBI Bank filed a petition for dues of over Rs 1,100 crore,' Hingmire explained. Courts have upheld that guarantors' liability under the IBC and Section 128 of the Indian Contract Act, 1872 is independent and survives even if the company undergoes resolution. 'While Subhash Chandra's petition was admitted but later disposed of, with connected applications still pending, Anil Ambani's case is ongoing before the NCLT Mumbai with a new resolution professional appointed, and GVK Energy's insolvency proceedings are active,' Hingmire added.
Time of India
12-08-2025
- Time of India
Shivranjini crash accused faces public anger in court
1 2 3 Ahmedabad: Rohan Soni, the 20-year-old BBA student accused in the fatal hit-and-run case near Shivranjini Crossroads, on Tuesday faced public anger when people assaulted him on the premises of Gheekanta court where he was presented by police for remand. The group attacked Soni as soon as he stepped out of the police vehicle. Policemen quickly moved him inside to prevent further assault. The court granted police remand till 1.30pm, Aug 14. Police told the court that Soni was racing with three friends on the stretch around 1.30am on Monday morning when he crashed into two men on a two-wheeler, sending them flying 100 feet from impact, and leading to their deaths. Akram Qureshi (35) died on the spot while Ashfaq Ajmeri (22) succumbed to injuries at Sola Civil Hospital. Both were residents of Jamalpur. Cops are looking for Soni's friends who were allegedly racing with him. Sources said the car was decorated for a birthday celebration and that more people were present inside the vehicle during the crash. According to traffic police officials, Soni had touched speeds of about 100 mph and was driving on the wrong side of the road near the Jhansi ki Rani BRTS bus stop, having overtaken a private bus before ramming into the scooter. You Can Also Check: Ahmedabad AQI | Weather in Ahmedabad | Bank Holidays in Ahmedabad | Public Holidays in Ahmedabad | Gold Rates Today in Ahmedabad | Silver Rates Today in Ahmedabad Police officers said that they will add the charge of culpable homicide not amounting to murder under Bharatiya Nyaya Sanhita's Section 105 as Soni treated city roads as a racing track despite knowing it might end up killing someone. Police records show Soni has prior traffic violations, including overspeeding, driving with dark tinted windows, driving without documents, and altercations with police. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Time of India
12-06-2025
- Health
- Time of India
Six-month-old girl dies in Karnataka after quack administers injections
Bengaluru: A quack in his 50s has landed in police custody in Ramanagara, Bengaluru south district, on charges of causing death of a six-month-old girl by administering injections. The accused is identified as Mohammed Saifulla, who ran his Alkhair Foundation Clinic in Balageri. Based on a complaint filed by the child's father, Ramanagara Town police booked Saifulla under BNS Section 105 (culpable homicide not amounting to murder). Saifulla lived in Balagere with his wife, police said. District health officials raided his clinic and seized it. Health officer Dr Niranjan declared him a quack. "He has no licence, nor has he studied MBBS. He could be a pharmacist, which we have to verify. But whatever the case, he is not a doctor and cannot treat patients," he said. Saifulla has been handed over to judicial custody. "We will take him to police custody during investigation, which will begin soon," a senior cop said. Police suspect Saifulla has been running his illegal clinic for close to a year, and locals thought he was a general physician. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Buy Brass Idols - Handmade Brass Statues for Home & Gifting Luxeartisanship Buy Now Undo The incident occurred when R Shivaraj, a driver, took his six-month-old daughter Sharanya to Saifulla on Tuesday night. "The child had a cyst on her right thigh. After examining her, Saifulla administered two injections. We returned home, but the child started crying and developed breathing problems. We called Saifulla, but he casually said the child would cry from the pain of injections. For breathing issues, he asked us to use nasal drops. But she continued to cry. However, after 5am, she slept. The following morning (Wednesday), we took her to another doctor, and he declared her brought dead. Shocked, we sought an explanation from Saifulla, but he just asked us to take the child to a govt hospital and said nothing when we told him that she died due to his treatment," Shivaraj stated in his complaint. Follow more information on Air India plane crash in Ahmedabad here . Get real-time live updates on rescue operations and check full list of passengers onboard AI 171 .
Time of India
16-05-2025
- Politics
- Time of India
Tent mishap death: Police arrest manager, supervisor
Kozhikode: Meppadi Police, on Friday, arrested Swachand and Anurag, the manager and supervisor of Tentgram's tourism facility at Thollayiram Kandi in Wayanad. They were held after 24-year-old Nishma, a native of Nilambur, was killed when the hut-like structure, under which tents were put up, collapsed early on Thursday morning Police charged them under BNS Section 105 (culpable homicide not amounting to murder) and the court later remanded them in judicial custody. Tired of too many ads? go ad free now Nishma was part of a 16-member group that went on a one-day trip to Wayanad with her friends. Police first registered a case of unnatural death but later added after a preliminary probe found safety violations. Meppadi SHO said the wooden poles of the hut-like structure were old and weak. It is believed that the structure, which had a thatched roof made of dried grass, collapsed under its own weight after the area received heavy rain early on Thursday morning. Meanwhile, Kalpetta MLA T Siddique wrote a letter to tourism minister PA Mohamed Riyas, urging the govt to act against unsafe tourism activities that have caused repeated deaths. Siddique also sought steps to assist Nishma's family as she was their only source of support Her father, who had a regular job in Jeddah, is now in prison after his residence permit (Iqama) expired. Siddique said the incident exposed serious lapses at such facilities. He pointed out that letting tourists stay in tents without checking their age or safety is a major issue. He also said the state govt's 2023 decision to allow such facilities to operate without approval from local bodies needs serious review.
