The National Corporation Law Appeals Tribunal (NCLAT) concluded its hearing on Tuesday and reserved its order on the petition filed by Reliance Capital's lenders seeking a second round of financial offers for the debt-plagued company, which it is currently undergoing the insolvency resolution process, as reported by the PTI.
Lead counsel Mukul Rohatgi, representing Torrent Investments, wrapped up his arguments, stating that the Insolvency and Bankruptcy Code (IBC) is intended to maximize value, but the focus should be on asset reactivation.
Rohatgi argued that IBC is not a debt recovery platform and that the Creditors' Committee should look beyond its individual recovery. "The focus should be on feasibility and feasibility," she said.
On Monday, lead counsel Kapil Sibal, representing the lenders, said the IBC's intention is to maximize the value of the assets and that the Creditors' Committee is free to negotiate the terms. NCLAT was hearing a petition filed by Vistra ITCL (India), one of the lenders of Reliance Capital promoted by Anil Ambani, challenging an NCLT order restricting further auctioning of the bankrupt company.
NCLT (National Company Law Court) Mumbai Court on 2 February said that the challenge mechanism for financial offers was concluded on 21 December 2022 with Torrent Investments' offer being Rs 8640 crore. the highest.
Torrent Investments had entered a guilty plea on January 9, asking the court to strike down the lenders' plan to hold a new auction for the Reliance Capital acquisition. Later, the Hinduja group firm also filed the petition to challenge the NCLT order.
Torrent Investment was the highest bidder by offering Rs 8,640 crore in the latest round of the "challenge mechanism".
Reliance Capital has consolidated debt of around Rs 40,000 crore.
Reliance Capital's lenders told the National Company Law Appeals Tribunal (NCLAT) that there was no deviation from procedures in the "challenge mechanism" adopted by them in resolving the Reliance Capital case.
