The National Company Law Tribunal (NCLT) will on September 26 hear the resolution plan for debt-laden Reliance Capital, filed by Hinduja Group firm Indusind International Holdings Ltd (IIHL), as Torrent Investments' plea to maintain The suspended decision has been rejected.
The Mumbai bench of the bankruptcy court has rejected Torrent's plea to keep the petition seeking approval of the IIHR resolution plan in abeyance until the Supreme Court passes a final order in the matter. The matter was scheduled for hearing on Tuesday before the insolvency court, however, it has now been adjourned to September 26.
The NCLT said the Supreme Court on the plea filed by Torrent has made it "abundantly" clear that it would be kept in abeyance until the parties have had an opportunity to obtain circulation and interim orders staying the proceedings. However, so far "the Supreme Court has not stayed the proceedings before us", a two-member NCLT bench said on September 1, 2023.
Furthermore, it was also claimed that the pendency of the scheme is causing a loss of Rs 42 crore per week to Reliance Capital's lenders. ''Keeping in view the above context of facts and circumstances, it is appropriate that the resolution plan petition be heard,'' NCLT said while rejecting Torrent Investments' plea. The court also said that the high court had on March 20, 2023 reserved the rights of the parties to participate in the Swiss challenge process. ''However, it is an indisputable fact that the Applicant (Torrent) has neither participated in the expanded challenge mechanism nor submitted the Resolution Plan,'' he said. Earlier, the National Company Law Appellate Tribunal (NCLAT) had on March 2 accepted the plea of Reliance Capital's lenders to hold an expanded challenge mechanism or a second round of auction for the sale of the financial services company indebted He had said that lenders to Reliance Capital, promoted by Anil Ambani, had the power to negotiate and ask for a higher offer. It set aside an order by the Mumbai bench of the National Company Law Tribunal (NCLT) that had declared the extended round of challenge illegal. NCLAT ruled that the Committee of Creditors (CoC) can renegotiate the bid amount or call another round of auction in its "commercial wisdom". This order of the NCLAT was challenged by Torrent in the Supreme Court. NCLT initiated corporate insolvency resolution process (CIRP) against Reliance Capital on November 29, 2021. The company has a consolidated debt of approximately Rs 40,000 crore. An RFRP was issued on April 26, 2022 and four resolution applicants: Torrent Investments, IIHL, Cosmea Financial-Piramal Group and Oaktree Capital submitted their bids. The CoC opined that the values of the bids received are not acceptable and the challenge mechanism process was initiated. On December 21, 2022, the challenge mechanism process was carried out in which only two bidders participated: Torrent and IIHL.
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