NEW DELHI: In a last ditch attempt, Torrent Investments has filed an urgent petition in the Supreme Court seeking a stay on the approval of IIHL's resolution plan for Reliance Capital.
In a plea filed before the high court on October 3, Torrent Investments has sought intervention of the court for urgent hearing and final disposal of its pending appeals that had challenged the second round of auction for the sale of assets of Reliance Capital.
Torrent Investments in its plea before the court has said that while its appeals were pending before the Supreme Court, the Committee of Creditors (COC) of Reliance Capital not only conducted the second round of auction but also approved the resolution plan of the IIHL and proceeded to file an application for approval of the scheme before the NCLT.
In the second round of Reliance Capital auction held on April 26, 2023, Hinduja Group's IIHL was the sole bidder and made a cash bid of Rs 9,700 crore. Torrent Investments decided not to participate in the auction.
Lenders are expected to receive around R10,200 crore (apart from R9,700 crore from IIHL, lenders would receive R500 crore in cash balance with Reliance Capital) against their total admitted claims of R16 ,000 crore, which will result in a 65% recovery for lenders. , sources said.
Attempt to stop NCLT from considering IIHR plan
Torrent had previously attempted to stop the NCLT from considering the IIHR resolution plan, but on August 25 the Supreme Court refused to stay the proceedings before the NCLT. In the first round of auction, Torrent Investments had offered to pay R8,640 cr, while IIHL had made a bid of R8,110 cr. But both the amounts were far below the liquidation value (13,000 cr) of Reliance Capital.
