MUMBAI: In a major relief for debt-ridden Reliance Capital, the Supreme Court on Monday refused to stay the order of the National Companies Act Appeal Tribunal (NCLAT) in another round of auction for Reliance Capital in the process of insolvency.
This development paved the way for the Committee of Creditors (CoC) to hold the second round of auctioning the RCap assets. The lenders are expected to hold the auction on March 29. Torrent Group had filed a request with the SC for an expedited hearing, as the CoC of the insolvent Reliance Capital was scheduled to hold the second round of bidding on that date.
In the first round of the challenge mechanism, Torrent emerged as the highest bidder with a bid of Rs 8,640 crore, while Hinduja Group company IndusInd International Holdings (IIHL) came second with a bid of Rs 8,110 crore. . The first round of the auction had a legal mess after the IIHL made a cash offer of Rs 9000 crore to the lenders after the completion of the auction process.
Torrent contested the IIHL's bid on the NCLT, although the company itself revised its own offer of Rs 8,640 crore by offering the full cash amount up front against the Rs 3,750 crore offered in the auction. NCLT ruled in Torrent's favor and suspended the second round of auction, but RCap's lenders challenged NCLT's decision in the court of appeal, which ruled in their favor and allowed them to proceed with the second round of auction.
