DHFL promoters cannot leave

In a major setback to Dewan Housing Finance Corporation Limited (DHFL), the Bombay High Court has restrained two of its promoters from leaving India.

The court has ordered both Dheeraj and Kapil Wadhawan not to leave the country till further orders.

A bench of Justice Shahrukh Kathawalla was hearing a petition filed by Jignesh Shah's 63 Moon Technologies, which has been seeking recovery of around Rs 200 crore dues.

While granting relief to the firm, Justice Kathawalla clarified that the Wadhawan brothers will have to seek permission from the HC, if they want to fly out of India.

In an earlier hearing, the DHFL had urged the HC to allow its promoters to travel abroad. The Wadhawans claimed that they will have to travel abroad to raise funds.

The 63 Moons vehemently opposed the request of DHFL. It claimed that if allowed to leave the country, the Wadhawans may escape and abscond.

The company promoted by Shah had subscribed to the non-convertible debentures (NCD) of DHFL and approached the court after the company failed to repay the money.

The DHFL had in a primary objection questioned the maintainability of the petition filed by 63 Moons, by highlighting the fact that the firm's trustees had already approached the Debt Recovery Tribunal (DRT) for recovery of dues on behalf of the debenture holders. This preliminary objection was however, rejected by the court. The plea has been adjourned for further hearing on November 14.