Date:16/09/2020

Com/s By:

OPs:

ORDER IN RESPECT OF WHETHER THE COPLAINANT TO APPROACH NCLT/ADMINISTRATOR APPOINTED BY IT OR WHETHER THE FORUM TO PROCEED WITH THE COMPLAINT

        The complainant deposited for a fixed period some amount with OP.  OP defaulted in payment on its maturity and resolution process under Insolvency Act has been initiated under insolvency and Bankruptcy Code 2016 as per the RBI application made and the national company law tribunal, Mumbai, in CP(IB-4258/MB/2019 on 03.12.2019, proceeded to appoint administrator and pronounced the moratorium as defined under section 14 of the Insolvency Code, which prohibits on commencement of moratorium the institution of any suit or continuation of proceedings or execution of any decree against the financial service provider(DHFL) is prohibited.  Para 7.4, 7.5 and 7.6 of the order is reproduced here;

7.4.  Upon Admission it is hereby pronounced that “Moratorium” as defined u/s.14 of the Insolvency code shall commence with effect from the date of Application i.e. 29.11.2019 as prescribed under Rule 5(b)(i) of FSP Rules 2019.  On commencement of “Moratorium” the institution of any Suit or continuation of proceedings or execution of any decree against the Financial Service Provider (DHFL) shall be prohibited.  Likewise, transferring, alienating or disposing of any asset of the FSP is hereby forbidden.  Further, any action to foreclose, recover or enforce any security interest created by FSP in respect of its property is also debarred.  However, supply of essential goods or services to FSP shall continue uninterrupted and not to be terminated or suspended during ‘Moratorium’ by the supplier.  As prescribed u/s 14(4), the order of “Moratorium” shall have effect till the completion of Insolvency Process.

7.5 The Administrator is hereby directed to cause a public announcement immediately (as per section 13 of the Code) intimating the initiation of Corporate Insolvency Resolution process and call for the admission of Claims as prescribed u/s 15 of The Code.

7.6.  The public announcement shall contain primarily the name and address of the Corporate Debtor along with the information about the Administrator and the last date for submission/lodgment of respective claims.  The procedure of public announcement is laid down u/s 15 of The code.  At this juncture, it is worth to mention that in the foregoing paragraphs reproduced a statement of “Unsecured loans” which contained a figure of Rs.1,024,311.00 (in lacs) amount of public deposit.  The Administrator shall update the list of Depositors along with the outstanding amount payable to each one with their address and communication information so that in future their interest can be watched along with all other stakeholders.

        No doubt several fixed depositors have made representation/writ petition to the Hon’ble Supreme Court of India, regarding their claim.  However, the said matter is still under adjudication.  Though the complainant has submitted that his complaint is not a suit, it falls under proceedings and as per the above order any continuation of proceedings have also been prohibited by NCLT.

        Under the circumstances, the remedy available to the complainant is to approach the administrator appointed by NCLT by submitting his relevant documents and seek remedy before him.  In view of this, this complaint is closed. Return all the documents produced, to the complainant.

MEMBER                         PRESIDENT