63 moons technologies, promoted by Jignesh Shah, will move the NCLAT to challenge the NCLT order which allowed Piramal Group to take over Dewan Housing Finance Corp Ltd (DHFL).

The company said that the resolution plan of the Piramals is contrary to law and against the interest of all DHFL creditors, including non-convertible debenture (NCD) holders to whom the bidder offers just Re 1 against their loss of Rs 45,000 crore.

63 moons said it would “shortly approach the NCLAT seeking their Rs 200 crore from Piramal and also the rest Rs 45,000 crore for other NCD holders”.

“The administrator of DHFL has filed applications for recovery of almost Rs 45,000 crore under Section 66 of the Insolvency and Bankruptcy Code (IBC) against DHFL's promoters and other persons on account of their fraud against the creditors. Contention of 63 moons is that this amount of Rs 45,000 crore must come to the defrauded parties, which are the creditors," it said in a statement.

The resolution plan, 63 moons said, is drafted in such a way that it favours the buyer (Piramal Group), allowing it to reap the benefits of recoveries from the promoters.

“Ascribing a value of Re 1 to the recoveries of fraud where claims are in excess of Rs 45,000 crore creates unjust enrichment of the buyer (Piramal) at the cost of creditors. Piramal has bid only for the current value of DHFL which does not include these amounts that were taken away fraudulently. Hence, all the more reason, the recoveries must come to the creditors only," the statement said.

63 moons had filed an application in the Mumbai NCLT seeking recovery benefits of Rs 45,000 crore should go to the creditors, including NCD holders, and not to the buyer of the company. But strangely, the resolution plans allows the Piramal Group to buy DHFL for a mere Rs 37,500 crore as against the outstanding debt of Rs 85,000 crore, and that the benefits of claims of over Rs 45,000 crore will be appropriated by Piramal just for Re 1, it said.

The irony is that the other members of the committee of creditors, who are mainly banks, have recourse to personal guarantees of promoters whereas NCD holders do not have any such contractual recourse. NCD holders will be left high and dry with a massive 65-75% haircut if the plan is approved, it said and wondered why banks are happy with the Rs 37,500 crore offer that too spread out over seven years.

On Monday, NCLT approved Piramal Capital and Housing Finance Ltd’s bid to acquire DHFL for Rs 37,250 crore.