Delhi High Court
Delhi High Court
Litigation News

Indiabulls withdraws plea before Delhi HC on payment to its non-convertible debenture holders, Order on status quo on payment quashed

Aditi Singh

The Delhi High Court yesterday allowed Indiabulls Housing Finance to withdraw its petition concerning the repayment to be made to its Non-Convertible Debenture holders.

Indiabulls withdrew the petition with the liberty to institute an appropriate proceeding in law.

Accordingly, the order for maintenance of status quo with respect to the repayment to be made by Indiabulls Housing Finance to its Non-Convertible Debenture holders has been set aside and quashed by the Court

The statement of withdrawal was made by Indiabulls before a Division Bench of Justices Siddharth Mridul and Talwant Singh in appeals against an order directing for maintenance of status quo with respect to the repayment to be made to Non-Convertible Debenture holders by Indiabulls.

Earlier this month, Indiabulls had moved the High Court seeking parity between its liability to pay and the rights to recover dues in terms of the RBI Circular dated March 27, 2020. It had claimed that since it was impossible for it to effect recoveries of debts owed to it by various institutions, its liability to pay its Non-Convertible Debenture Holders should be postponed.

Accordingly, a single judge Bench of the Court had issued an order for maintenance of status quo with respect to such payment.

Aggrieved by the interim order, Association of Mutual Funds of India, Securities and Exchange Board of India (SEBI), IDBI Trusteeship and ICICI Lombard preferred appeals before the Division Bench.

While Indiabulls maintained that in spite of the rendering of the Single Judge Bench's order, it had continued to discharge its financial obligations qua all the non-convertible debenture holders, the order of the Single Judge Bench was stayed.

Yesterday, when the appeals came up for hearing, Indiabulls stated that it did not wish to prosecute its petition any further and it may be allowed to withdraw the same with liberty to institute an appropriate proceeding, as may be advised, in accordance with law.

All the affected parties, including the Appellants in the appeals, would be joined as parties in the proposed proceedings, if any, Indiabulls added.

Allowing Indiabulls to withdraw the petition, the Court ordered,

The ad-interim impugned order dated 15.04.2020, passed in the said writ petition is consequently set aside and quashed; and the present appeal is, resultantly, allowed and disposed of along with the other connected appeals being LPA141/2020, LPA142/2020 and LPA143/2020.
Delhi High Court

Senior Advocate Sandeep Sethi with Advocates Padmaja Kaul, Varun Khanna, Aman Chaudhary, Sidhant Kumar Marwah was represented by ICICI Lombard General Insurance Company.

Senior Advocates Harish Salve, Rajiv Nayar with Advocates Karan Luthra, Rishi Agrawala, Ankit Banati, Kartik Nayar represented Indiabulls.

Solicitor General Tushar Mehta, Senior Advocate Neeraj Malhotra with Advocate Ashish Aggarwal represented SEBI.

Association of Mutual Funds of India was represented by Senior Advocate Neeraj Kishan Kaul with Advocate Somasekhar Sunderesan along with Shankh Sengupta, Tine Abraham, VatsalaKumar, Sahiba,Ramchandra Madan, Deepak Josh.

IDBI Trusteeship was represented by Advocate Abhishek Baid.

Read the Orders:

ICIC Lombard General Insurance vs Indiabulls Housing Finance Order.pdf
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SEBI vs Indiabulls.pdf
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Association of Mutual Funds of India vs Indiabulls.pdf
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IDBI Trusteeship vs Indiabulls.pdf
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