Torrent Investments Pvt. Ltd. Ltd has filed an urgency letter in the Supreme Court challenging the March 2 order of the National Company Law Appellate Tribunal, which allowed lenders to Reliance Capital to start a second auction, as part of its insolvency resolution process. corporate.
In his three-page letter, Torrent said he had sought the intervention of the high court for an urgent hearing and final disposal of his pending appeals, challenging a second round of auctions of RCap's indebted assets.
The legal dispute with the lenders began after Torrent submitted its bid for $8,640 crore for RCap, but rival bidder Hinduja Group through IndusInd revised its offer to $9,000 crores. Subsequently, the board of creditors (CIC) proposed an expanded challenge mechanism in search of greater value for the company.
In April, in the second auction, Hinduja Group's IndusInd International Holding Ltd was the sole bidder. โAny subsequent developments pursuant to the completion of the second challenge mechanism, including the approval by the CIC of the resolution plan by the IIHL and the submission of the resolution plan before the NCLT, Mumbai, are conscious steps taken by the CIC and the administrator to resolve the appeal presented by the appellant (Torrent) were unsuccessful and caused harm to the appellant in total contravention of what was ordered," Torrent alleged in his urgent request.
On Wednesday, the Supreme Court put the matter for final disposition on October 11.
Earlier, the lenders had moved the NCLAT after the NCLT allowed Torrent Investment's plea challenging the lender's proposal to hold a second auction (also known as extended challenge mechanism) as part of the corporate insolvency resolution process (CIRP). from Reliance Capital.
"The proposed second round of challenge mechanism is nothing but an act to indirectly achieve what could not have been achieved if the challenge mechanism had been adhered to in terms of the note of challenge process," a bench headed by the Justice Shyam Babu Gautam and Justice Pradeep Narhari. Deshmukh said in his March order.
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Updated: October 4, 2023, 11:47 pm IST
