{"id":357231,"date":"2025-08-21T10:30:45","date_gmt":"2025-08-21T05:00:45","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=357231"},"modified":"2025-08-21T10:39:22","modified_gmt":"2025-08-21T05:09:22","slug":"cam-advises-union-bank-bankruptcy-petition-kapil-wadhawan-nclt","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2025\/08\/21\/cam-advises-union-bank-bankruptcy-petition-kapil-wadhawan-nclt\/","title":{"rendered":"CAM successfully advises Union Bank of India in Bankruptcy Petition Against Kapil Wadhawan; NCLT Mumbai Admits Petition"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\">The petition (&#8220;<span style=\"font-weight: bold;\">Bankruptcy Petition<\/span>&#8221;) filed by Union Bank of India (&#8220;<span style=\"font-weight: bold;\">UBI<\/span>&#8221;) under Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001549611\" target=\"_blank\">123<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002802178\" target=\"_blank\">Insolvency and Bankruptcy Code, 2016<\/a> (&#8220;<span style=\"font-weight: bold;\">Code<\/span>&#8221;) read with Rule 7 of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-9000339179\" target=\"_blank\">Insolvency and Bankruptcy (Application to Adjudicating Authority for Bankruptcy Process for Personal Guarantors to Corporate Debtors) Rules, 2019<\/a> (&#8216;<span style=\"font-weight: bold;\">Bankruptcy Rules&#8217;<\/span>) for initiation of bankruptcy process against Kapil Wadhawan has been approved by the National Company Law Tribunal, Mumbai Bench (&#8220;<span style=\"font-weight: bold;\">NCLT<\/span>&#8221;) by its orders dated August 14, 2025.<\/p>\n<p style=\"margin-bottom: 3%;\">Kapil Wadhawan had executed a joint deed of personal guarantee to secure the credit facilities (&#8220;<span style=\"font-weight: bold;\">DHFL Facilities<\/span>&#8221;) extended to erstwhile Dewan Housing Finance Corporation Ltd. (&#8220;<span style=\"font-weight: bold;\">DHFL<\/span>&#8221;), 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 <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001549834\" target=\"_blank\">95<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002802178\" target=\"_blank\">Code<\/a> (&#8220;<span style=\"font-weight: bold;\">Section 95 Petition<\/span>&#8221;) 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.<\/p>\n<p style=\"margin-bottom: 3%;\">The NCLT by its order dated April 2, 2024 (&#8220;<span style=\"font-weight: bold;\">Admission Order<\/span>&#8221;) 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.<\/p>\n<p style=\"margin-bottom: 3%;\">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 <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001549601\" target=\"_blank\">114<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002802178\" target=\"_blank\">Code<\/a>, and consequences under Section 115(2) of the Code shall follow.<\/p>\n<p style=\"margin-bottom: 3%;\">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.&nbsp;<\/p>\n<p style=\"margin-bottom: 3%;\">The team comprised of<span style=\"font-weight: bold;\"> Animesh Bisht<\/span>, <span style=\"font-style: italic;\">Partner;<\/span> <span style=\"font-weight: bold;\">Aniruddh Gambhir<\/span>, <span style=\"font-style: italic;\">Principal Associate;<\/span> and <span style=\"font-weight: bold;\">Pushkar Deo<\/span>, <span style=\"font-style: italic;\">Associate.<\/span> The matter was led under the guidance and supervision of <span style=\"font-style: italic; font-weight: bold;\">L. Viswanathan<\/span>, Senior Partner.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">Kapil Wadhawan had executed a joint deed of personal guarantee to secure the credit facilities extended to erstwhile Dewan Housing Finance Corporation Ltd., not exceeding INR. 50,656.84 Crores.<\/p>\n","protected":false},"author":67011,"featured_media":357242,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45282,2],"tags":[87608,87609,30960,38679,6121,64652,81364,41302,31384,37898],"class_list":["post-357231","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-law-firms-news","category-news","tag-bankruptcy-petition","tag-bankruptcy-process","tag-cyril-amarchand-mangaldas","tag-dhfl","tag-insolvency","tag-kapil-wadhawan","tag-legal-advisory","tag-nclt-mumbai","tag-personal-guarantee","tag-union-bank-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>CAM Advises Union Bank of India in Bankruptcy Petition Against Kapil Wadhawan, NCLT Mumbai Admits Petition | SCC 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