Mumbai: Vistra ITCL, Reliance Capital's secured lender, has submitted to the National Company Law Appeals Tribunal (NCLAT) that NCLT has acted beyond its jurisdiction at a stage where even signed plans have not been submitted to the lenders for consideration in Reliance's ongoing insolvency proceedings. Capital.
The lender had moved to the appeals court against NCLT's verdict suspending Reliance Capital's second auction. NCLAT reserved its decision last week.
โNCLT has usurped the jurisdiction of the Committee of Creditors (CoC) by arguing that the CoC has to vote on the $8,640 crore Torrent plan and $8,110 crores from the IIHL, and that the CoC has no jurisdiction to negotiate even on those figures," Vistra said in his presentation.
Torrent Investments and the Reliance Capital lenders have disagreed over bidding for the insolvent company. Essentially, Torrent had submitted an offer of $8,640 while the Hinduja group submitted a revised offer of $9,000 crores which led to the feud between the two.
However, the lenders, in an attempt to achieve maximum value for the failing company, said both offers were sub-optimal in nature and below the company's liquidation value.
The lender further added that NCLT has not even examined these plans and there is no $The IIHL and NCLT's Rs 8,110 crore plan has substituted their view for CoC's, which is not allowed under the IBC.
On February 2, the Mumbai court of the National Company Law Tribunal (NCLT) ruled against holding a new auction round for the acquisition of Reliance Capital (RCap) promoted by Anil Ambani and said that the challenge mechanism of the financial offers has already concluded.
He confirmed Torrent Investments' petition challenging the bankers' decision to participate in the second round of auctions seeking greater value for the bankrupt company. NCLT in its order said that the bank allows Torrent Investments' application and stated that the financial offer challenge mechanism concluded on December 21, 2022, with the applicant's offer in $8,640 crore being the highest.
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