Reliance Capital resolution: NCLAT issues notices to Torrent Investments, others on lender's plea

Reliance Capital Resolution: NCLAT Issues Notices to Torrent Investments, Others at Lender's Request

Photo: BCCL

The National Court of Appeals in Company Law (NCLAT) on Tuesday sent notices to Torrent Investments and other defendants in a petition filed by the lender of trust capital seeking a second round of financial offers for the indebted company, currently in the process of insolvency resolution. A two-member NCLAT bank headed by President Justice Ashok Bhushan issued notices, instructing respondents to submit responses within 3 days.

The appeals court ordered the petition to be listed on February 9, 2023, saying that the appeal would be heard and decided by it.

On February 2, the Mumbai Bank of National Court of Company Law (NCLT) had ruled against holding a new round of auctions for the acquisition of Anil Ambani, promoted by Dependence Capital (RCap) and said that the mechanism for challenging economic 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 court allows Torrent Investments' request and stated that the challenge mechanism for financial offers was concluded on 21 December 2022, with the applicant's offer of Rs 8640 crore being 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 RCap acquisition.

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 resolution: NCLAT issues notices to Torrent Investments, others on lender’s plea

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