The division bench of Justice Virendra Singh Bisht and a technical member Prabhat Kumar is expected to deliver its ruling on the approval scheme of the hinduja IndusInd International Holdings, owned by the group.
Electronic voting on the resolution for approval of the resolution plan was concluded on June 29 last year, Reliance Capital manager Nageswara Rao Y said in a stock exchange announcement. However, he did not disclose the financial details in the stock exchange announcement.
The order is likely to come in the backdrop of developments where veteran lawyer Shardul Shroff had approached the Supreme Court on behalf of Torrent Investments in October last year to expedite hearing on the company's plea to stay the second challenge mechanism in a corporate insolvency resolution process (CIRP) for Reliance Capital, promoted by Anil Ambani.
At the center of the dispute is an offer from Hinduja Group entity delivered 24 hours after the auction deadline (December 21, 2022), exceeding the offer made within the deadline stipulated by Torrent Investments. The lenders decided to hold a second round of auction and that matter is pending before the Supreme Court.
While Torrent was the highest bidder and offered Rs 8.64 billion in the first round, Hinduja offered Rs 9.66 billion in the second round. Torrent Investments, which was also involved in the fight for the troubled financial company, refrained from presenting a final plan to the affected lenders. In June, 99% of lenders voted in favor of the IIHL plan. The administrator has admitted Rs 25,345 crore in lender claims as on June 8, 2023. Now, Torrent Investments has challenged the view taken by NCLAT on Regulation 39 (1A) of the Insolvency and Bankruptcy Board of India (IBBI) that not restricting the rights of lenders to continue financing negotiations and the decision to implement a Second Challenge Mechanism even after their conclusion does not violate Regulation 39(1A) of the CIRP Regulations.
As per Regulation 39(1A), the bidder must prepare a resolution plan in accordance with the bankruptcy code and submit the resolution plan to the RP within the time indicated in the invitation issued by the RP or the trustee in the current case.
In November 2019, the court admitted an application to initiate insolvency proceedings against the indebted financier.
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