Torrent vs Hinduja fight for Reliance Capital may reach NCLAT doors

He bankruptcy court on Thursday allowed an application filed by Torrent Investments contesting the lender's decision to hold a second auction for the sale of trust capital and a late enhanced offer of hindu group after the auction concluded on December 21 for the same bankrupt company.

“The issuance of the process note for the expanded challenge mechanism is hereby declared to be in violation of Article 39(1)(a) of the CIRP Regulations,” said the divisional court consisting of Justice PN Deshmukh and Member technician Shyam Babu Gautam in an oral order. . "Detailed observations are given in the order," the court said. The creditors' committee is expected to challenge this order before the National Court of Appeals in Company Law (NCLAT).

The order was not uploaded until the time of archiving the story.

Earlier, on January 23, the Mumbai court of the National Company Law Tribunal (NCLT) had continued his stay in the second round of the challenge mechanism proposed by the administrator of the financial Nageswara Rao Y, while adding that he would issue an order in the week of January 30.

Subsequently, the creditors' committee (CoC) moved to the National Company Law Appeal Tribunal (NCLAT), seeking to annul a bankruptcy court order for maintaining the status quo in the company's insolvency proceedings. However, they decided to withdraw the same request later.

At the center of the dispute is an offer from Hinduja Group entity given 24 hours after the auction deadline (December 21), surpassing the offer made in the time stipulated by Torrent Investments. While Torrent has offered an upfront payment of Rs 8,640 crore, Hinduja offered Rs 8,950 crore including Rs 8,110 crore as upfront payment. However, both offers are below liquidation value.

While ordering the status quo, the court was referring to its March 3 order, which ordered Dependence The Capital administrator did not submit the late plan submitted by Hinduja Group to the creditors' committee (CoC) for consideration. In this case, main defenders Mukul Rohtagi and Darius Khambata appeared for Torrent. While Lead Counsel Kapil Sibal and Law Firm Luthra & Luthra Law Office for the CoC and Ravi Kadam Lead Counsel appeared for Administrator Nageswara Rao Y in the case. Hinduja Group is being represented by senior lawyers Harish Salve and Navroz Seservai.