New Delhi, Jul 10 (IANS): The National Company Law Appellate Tribunal (NCLAT) on Wednesday rejected HDFC's insolvency plea against the Malvinder and Shivinder Singh-promoted NBFC, RHC Holding Pvt Ltd.

The two-member bench, headed by NCLAT Chairman Justice S. J. Mukhopadhaya, upheld the order of the principal bench of the National Company Law Tribunal (NCLT) which had rejected HDFC's plea, saying that the appellate tribunal could not permit Insolvency and Bankruptcy Code (IBC) proceedings against a provider of financial services.

The NCALT order said that any claims of illegal receipt of deposits by RHC Holdings should be placed before the Reserve Bank of India as non-banking financial companies come under the central bank's regulation.

HDFC moved the appellate tribunal after the NCLT passed an order on December 6, 2018, observing that RHC Holding was an NBFC and does not come under the purview of the IBC.

RHC Holding had taken a loan of Rs 200 crore from HDFC in April 2016. It paid the interest for the first quarter on time but later defaulted on its dues. HDFC had sought insolvency proceedings against RHC Holding to recover an unpaid amount of Rs 41 crore.