The petition (“Bankruptcy Petition”) filed by Union Bank of India (“UBI”) under Section 123 of the Insolvency and Bankruptcy Code, 2016 (“Code”) read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Bankruptcy Process for Personal Guarantors to Corporate Debtors) Rules, 2019 (‘Bankruptcy Rules’) for initiation of bankruptcy process against Kapil Wadhawan has been approved by the National Company Law Tribunal, Mumbai Bench (“NCLT”) by its orders dated August 14, 2025.
Kapil Wadhawan had executed a joint deed of personal guarantee to secure the credit facilities (“DHFL Facilities”) extended to erstwhile Dewan Housing Finance Corporation Ltd. (“DHFL”), not exceeding INR. 50,656.84 Crores. Upon defaults committed by DHFL under the Facilities, UBI invoked the personal guarantee and subsequently filed a petition under Section 95 of the Code (“Section 95 Petition”) seeking initiation of the personal insolvency resolution process against Kapil Wadhawan for unpaid dues amounting to approximately INR 3,958 crores, due as on August 31, 2020.
The NCLT by its order dated April 2, 2024 (“Admission Order”) had admitted the Section 95 Petition. The Admission Order was challenged by Kapil Wadhawan before the National Company Law Appellate Tribunal and the Supreme Court, and both forums upheld the admission of the Section 95 Petition, dismissing the challenges.
Subsequently, due to non-submission of repayment plan by Kapil Wadhawan, the NCLT, by its order dated January 2, 2025, held that non-submission of repayment plan will tantamount to rejection of the repayment plan in accordance with Section 114 of the Code, and consequences under Section 115(2) of the Code shall follow.
Thereafter, UBI filed the Bankruptcy Petition seeking to initiate bankruptcy process against Kapil Wadhawan for his failure to pay INR 4,545 crores to UBI as on March 28, 2025. The NCLT admitted the Bankruptcy Petition by its order dated August 14, 2025 and appointed Mr. Sanjay Kumar Mishra as the bankruptcy trustee.
The team comprised of Animesh Bisht, Partner; Aniruddh Gambhir, Principal Associate; and Pushkar Deo, Associate. The matter was led under the guidance and supervision of L. Viswanathan, Senior Partner.
