The Supreme Court on 31.01.2020 in Vinay Kumar Mittal vs Dewan Housing Finance Corporation Ltd dealt with rights of 1 lakh depositors in DHFL insolvency. DHFL is a systemically important NBFC regulated by RBI and NHB. Due to default, High Court passed interim orders stopping payments to depositors. Depositors approached Supreme Court citing priority under NHB Act and RBI Act.
Facts: Interim Injunction By High Court; CIRP Initiated By RBI
Bombay High Court restrained DHFL from paying depositors and unsecured creditors. DRT also passed similar order. Appellants argued depositors must be paid first. Meanwhile RBI invoked Section 227 IBC and filed CIRP against DHFL. NCLT imposed moratorium from 29.11.2019. Administrator took over. Depositors were classified as financial creditors under Section 21(6A)(b).Legal Reasoning: IBC Process To Decide Depositors Claims
Supreme Court noted that IBC is a complete code. Once CIRP starts, all claims must be dealt with by CoC and Resolution Professional. Court refused to examine whether NHB Act or RBI Act gives preference to depositors. Left it open for depositors to argue before CoC and NCLT. High Court orders dated 10.10.2019 and 13.11.2019 should not influence CoC.
Court also did not interfere with CoC decision to allow fresh lending of Rs 500 cr per month, subject to depositors interests being considered.
Practical Impact: What DHFL Depositors Must Do Depositors are financial creditors in CIRP. They must file claims with Administrator. Authorized Representative will represent depositors in CoC meetings. Depositors can raise priority arguments under NHB Act and RBI Act before NCLT. Moratorium prohibits individual recovery suits. All remedies only through IBC.
Conclusion:
Depositors Have Voice In DHFL Resolution
Vinay Kumar Mittal vs DHFL establishes that vinay kumar mittal vs dhfl rbi act nhb act requires depositors to be heard in CIRP. Supreme Court 31.01.2020 protected depositors by directing CoC to consider their claims. Landmark ruling for NBFC/HFC insolvency and depositor protection.
