The Delhi High Court on April 29 stayed the interim relief granted to Indiabulls Housing Finance with respect to repayment of its dues to non-convertible debenture (NCD) holders, CNBC-TV18 has reported.
Earlier this month, the court had granted protection to the company from any coercive action in the event that it failed to make repayments to its debenture holders. The relief was granted in light of the COVID-19 pandemic which has brought businesses to a halt.
The housing finance company had filed a petition arguing that recovery of debts owed to it has become almost impossible amid the ongoing lockdown. It had also noted that the Reserve Bank of India’s March 27 circular allowing lending institutions to grant a three-month moratorium on payments of all instalments during the March-May period had also impacted its ability to recover dues.
However, the Association of Mutual Funds in India and IDBI Trusteeship had on April 28 moved the court, seeking a stay on its earlier order.
Indiabulls Housing Finance owes more than Rs 604 crore in commercial paper dues.