The debt-burdened Reliance Capital (RCap) lenders, who had filed an appeal with the court of appeals against the bankruptcy court's ruling to maintain the status quo, have withdrawn their guilty plea. The lenders, led by Vistra ITCL (India) Ltd, had moved to NCLAT on Tuesday claiming they were losing money due to deadlock in the resolution process of the former Anil Ambani group company. They wanted the National Company Law Tribunal's order on the status quo annulled.
The National Companies Act Appeal Tribunal (NCLAT) said it would not "express any opinion" as the matter must be dealt with by the awarding authority. The lawyer, who appeared on behalf of the lenders, also requested leave to withdraw the appeal, which was also granted by the appeal court.
This means that NCLT's instructions to stay all proceedings in the RCap insolvency process will continue until the final orders are made. The Mumbai bank of the National Company Law Tribunal (NCLT) is likely to make an order next week.
Torrent Investments, a group company through which Gujarat-based Torrent Group had bid for RCap, had earlier moved NCLT by calling the manager's decision to conduct another round of the challenge process "unlawful."
Torrent Investments, a group company through which Gujarat-based Torrent Group had bid for RCap, was the defendant in the case brought before NCLAT.
Previously, the RCap administrator had proposed to hold a second round of the challenge mechanism on January 23, while the NCLT asked him to hold the status quo until the next hearing. The trustee was seeking to increase revenue to over Rs 10 000 crore from the insolvency proceedings by conducting a second challenge mechanism.
RCapEarlier, Torrent's administrator also sought assurances from Torrent Group and Hinduja Group, the final bidders for all of the debt-laden company's assets, that they will not withdraw their bids and will also maintain the bid amount they had previously quoted.
