Torrent seeks SC’s urgent intervention in RCap’s insolvency proceedings

In a move that is likely to further delay the insolvency proceedings of Reliance Capital (RCap), Gujarat-based Torrent Investments has sought the intervention of the Supreme Court and hear its pending pleas before the resolution plan is approved.

This comes at a time when the final approval by the National Company Law Tribunal (NCLT) in Mumbai and Supreme CourtApprovals are needed to complete the first one. Anil Ambani insolvency process of the group company.

In its urgent letter filed with the Supreme Court on October 3, Torrent Investments, a Torrent Group company, has sought the intervention of the high court for an “urgent hearing and final disposition of all pending appeals.” The company, a bidder in the first round of auctions, had earlier challenged the second round of auctions called for the sale of RCap's assets.

As the second challenge mechanism (SCM) has been challenged by the appellant, any further developments pursuant to the conduct of the SCM are all “conscious steps taken by the Committee of Creditors (CoC) and the administrator to consider the appeal filed by the appellant as unsuccessful and causing harm to the appellant,” Torrent Investments said in the letter.

This is in complete contravention of the Supreme Court orders and relevant provisions, he added.

The second round of RCap auction was held on April 26, 2023, where Hinduja Group company IndusInd International Holdings (IIHL) was the sole bidder. While Torrent Investment did not participate in the auction, IIHL, which was the sole bidder, made a cash offer of Rs 9.8 billion.

Torrent Investment subsequently moved NCLT calling the administrator's decision to conduct another round of challenges “illegal.”
In June this year, RCap lenders approved IIHL's resolution plan with 99.6% votes and the plan is currently pending before the Mumbai bench of the NCLT for final approval. NCLT will hear the resolution plan for approval on October 25.

In its letter, Torrent Investments requested the intervention of the superior court and to hear all the pending appeals with the final disposition on the next date of October 11.

This is the second time (the previous one, in August, when the court rejected the request for a stay of the proceedings), Torrent requests the intervention of the Supreme Court in the RCap insolvency matter.

In July, RCap's bankruptcy trustee submitted the resolution plan submitted by Hinduja Group to the NCLT for approval.