Lawstreet Journal

Delhi High Court Stays Interim Relief Granted to Indiabulls Housing Finance Limited

Lawstreet Journal 2 May 2020 2:55am

Image courtesy: Lawstreet Journal Business Delhi High Court Stays Interim Relief Granted to Indiabulls Housing Finance Limited

A two-judge bench of the Delhi High Court on 29th April 2020 stayed an interim order granted by a single-judge bench restraining any coercive action against mortgage lender Indiabulls Housing Finance Ltd. for failing to pay its dues to non- convertible debentures holders.

The bench consisting of Justice Siddharth Mridul and JusticeTalwant Singh listed the date for final arguments on the case to be 4th May 2020.

“Thanks to the division bench’s order today, debt-based mutual funds should be much relieved as they will continue to be able to compel payments from their borrowers. If mutual funds remain healthy and continue to receive payments, the general public who hold units in mutual funds will have at least one less reason to worry in these troubled times and will be secured in terms of the value and liquidity of their investments," said Advocate Shankh Sengupta, a partner at Trilegal, and represented the Association of Mutual Funds in India in the appeal.

The temporary order restricting forced action against Indiabulls Housing Finance Ltd. for its incompetency to reimburse bondholders had increased fears among mutual fund owners that more borrowers could take the same alternative.

The Securities and Exchange Board of India, Indiabulls Housing Finance Trusteeship Services Ltd, and Association of Mutual Funds in India on 28th April 2020 moved to the Delhi High Court against the interim order.

On the final date of the hearing, Senior Advocate Rajiv Nayar, appearing for Indiabulls Housing Finance Limited, had depended on the Reserve Bank of India’s 27 March 2020 circular that gave freedom to all banks and financial institutions to… Continue Reading...

Tagged: Indiabulls  
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