"We consider the minutes of the CoC meeting and the facts presented to the court to be false... We request the NCLT to deem the new round of auctions ending January 19 unsuccessful," it added.
If this 'challenge mechanism' is accepted, there will be no finality and the CoC will announce a new auction round every month by raising the threshold, said Mukul Rohatagi (who also represents Torrent Investment).
"If this request for a new offer is accepted, the process will not be final and they will do it every month... The threshold for the new 'challenge mechanism' is Rs 9.5bn and every month Rs 50 crore or "I could add more. My opinion is that the new offer that ends on January 19 should be cancelled," he added.
Ravi Kadam, representing the administrator, in his response stated that there was no violation of the NCLT court order.
"The CoC is allowed to negotiate with resolution seekers if lenders are not satisfied with the plan. It is the duty of the CoC to maximize value. It is an ongoing process and is a collaborative decision between the servicer and the CoC. I am not in violation the law nor have I abdicated my duty as an administrator," Kadam said.
The court, headed by Pradeep Narhari Deshmukh and Shyam Babu Gautam, adjourned the matter for a further hearing on January 18. Dependence Capital has a consolidated debt of around Rs 40,000 crore.
The Reserve Bank (RBI) had applied to initiate the Corporate Insolvency Resolution Process (CIRP) against the Reliance Group company at NCLT Mumbai bank.
The subsidiaries of Reliance Capital that are subject to insolvency resolution are: Reliance General Insurance, trust nippon Life insurance, Reliance Securities, Reliance Asset Reconstruction Company, Trusted Home Financingand Reliance Commercial Finance.
Nageswara Rao Y, appointed by RBI, is Reliance Capital's insolvency administrator.
