Delhi High Court on Wednesday stayed interim relief given to Indiabulls Housing Finance. The court had earlier given relief to the firm in its discharge of dues to non-convertible debentures (NCD) holders.
The court’s interim order had directed that no coercive action be taken against Indiabulls Housing for non-payment of NCD dues.
However, the Association of Mutual Funds in India (AMFI) and IDBI Trusteeship on Tuesday moved the division bench of the Delhi HC, seeking a stay of the interim order allowing Indiabulls Housing to not discharge dues payable to NCD holders.
Market regulator, Securities and Exchange Board of India (SEBI), had also challenged the interim order granting protection to Indiabulls Housing.
Indiabulls Housing had submitted before the single judge bench of the Delhi HC that the RBI had issued a moratorium circular on Mar 27, allowing financial institutions to grant a moratorium on installments that become due between Mar 1 and May 31.
Indiabulls Housing had argued that owing to such regulatory action, it had become “impossible” to effect recoveries of debts owed to it by various institutions.
The company had argued that the inability to recover funds directly impacted the ability of the NBFC to discharge dues payable by it, including to fund houses holding NCDs issued it.