Reliance Capital Resolution: NCLAT Notice To Torrent Investments, Others On Lender's Plea

The NCLAT on Tuesday issued notices to Torrent Investments Pvt. and other respondents on a petition filed by the lender of Reliance Capital Ltd. seeking a second round of financial bids for the debt-ridden firm, currently going through the insolvency resolution process.

A two-member National Company Law Appellate Tribunal bench, headed by chairperson Justice Ashok Bhushan, issued notices and directed the respondents to file replies within three days.

The appellate tribunal has directed to list the petition on Feb. 10, saying the appeal would be heard and decided by it.

"It is made clear that appeal may be heard and decided finally," said the NCLAT bench.

During the proceedings, senior advocate Mukul Rohatgi, representing Torrents Investments, sought time to file a reply over the petition filed by the lenders.

He submitted that the appeal should be heard and decided finally.

"Respondents may file their reply by Feb. 9, 2023. Rejoinder, if any, be filed by the date fixed," said the NCLAT.

Vistra ITCL (India) Ltd., one of the members of the committee of creditors of Reliance Capital, has moved the appellate tribunal against an NCLT order.

On Feb. 2, the Mumbai bench of the National Company Law Tribunal had ruled against holding a fresh round of auction for the takeover of Anil Ambani-promoted Reliance Capital and said the challenge mechanism for financial bids has already concluded.

It upheld the plea by Torrent Investments challenging bankers' decision to go for the second round of auctions in pursuit of higher value for the bankrupt company.

Senior advocate Kapil Sibal, appearing for the lender, submitted that NCLT by the impugned order has stopped the second challenge method, which has already been resolved by the CoC.

He said the CoC's jurisdiction to consider the resolution plan and take the decision has been fettered by the NCLT.

The NCLT, in its order, said the bench allows Torrent Investments' application and declared that the challenge mechanism for financial bids stood concluded as on Dec. 21, 2022, with the bid of the applicant at Rs 8,640 crore being the highest.

Torrent Investments had filed a plea on Jan. 9, requesting the tribunal to quash the lenders' plan to hold a fresh auction for the takeover of Reliance Capital.

Torrent Investments was the highest bidder offering Rs 8,640 crore in the last round of the "challenge mechanism".

Reliance Capital has a consolidated debt of about Rs 40,000 crore.