NCLT dismisses HDFC plea for initiating insolvency proceedings against RHC Holding

The Economic Times

The National Company Law Tribunal (NCLT) Thursday dismissed the plea of HDFC Ltd to initiate insolvency proceedings against RHC Holding, a non-banking financial company promoted by Singh Brothers -- Malvinder Mohan Singh and Shivinder Mohan Singh. A two-member principal bench headed by NCLT President Justice M M Kumar dismissed the plea of HDFC Ltd, which had moved the tribunal to recover Rs 41 crore. RHC Holding had contended in this matter that it is a non-banking finance company and thus it could not be brought under IBC code. Earlier in this matter, Japanese drug major Daiichi Sankyo had moved NCLT to stay the insolvency proceedings against RHC Holding. A tribunal in Singapore had passed the award in favour of Daiichi holding that the Singh brothers had concealed information that Indian company Ranbaxy was facing probe by the US Food and Drug Administration and the Department of Justice, while selling its shares.