Mumbai: A hearing on Torrent Investment's plea in the Reliance Capital resolution plan matter is scheduled to be held in the Supreme Court on Tuesday.
Despite the lenders' approval of Hinduja Group's resolution plan with an overwhelming 99.6 per cent vote five months ago, Reliance Capital's resolution process has not come to an end.
The Torrent plea, which had challenged the second round of auction for the sale of Reliance Capital assets, is pending in the SC since April 2023.
The Supreme Court had refused to suspend the second round of the auction, which was finally held on April 26, 2023.
Hinduja Group company IIHL was the only bidder in the second auction as Torrent Investment decided not to participate.
IIHL had made a cash offer of Rs 9,800 crore. The IIHL resolution plan was approved by the lenders with 99.6 per cent votes in favor of the plan, in June 2023, but despite that, the Reliance Capital resolution process has not come to an end due to pending litigation in the SC and various procedural delays.
In August, Torrent Investment once again approached the SC to stop the NCLT from considering the IIHR resolution plan, but the court refused to stay the proceedings before the NCLT. The NCLT approval of the IIHL resolution plan is still pending as the company is yet to receive approvals from the Reserve Bank of India (RBI), Competition Commission of India (CCI) and the Competition Authority. Insurance Development and Regulatory Authority of India (IRDAI) on the resolution plan, which are prerequisites for final approval by the NCLT.
On October 3, Torrent Investment filed a Letter of Urgency with the Supreme Court, requesting an urgent hearing and final disposition of its pending appeals. In the letter, Torrent Investment argued that Reliance Capital's Committee of Creditors (COC) conducted the second round of auction and approved IIHL's resolution plan while its appeals to the Supreme Court were pending.
They expressed concern that these actions could render their pending appeals fruitless.
