Reliance Capital Resolution: NCLAT Issues Notice To Torrent Investments Earlier, NCLT in its order said the bench allows Torrent Investments' application and declared that the challenge mechanism for financial bids stood concluded as on December 21, 2022
By Shrabona Ghosh •
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The National Company Law Appellate Tribunal (NCLAT) on Tuesday issued notices to Torrent Investments and other respondents on a petition filed by the lender of Reliance Capital seeking a second round of financial bids for the debt-ridden firm, currently going through insolvency resolution process, reported PTI. The appellate tribunal was directed to list the petition on February 9, 2023.
Vistra ITCL (India) Ltd, one of the members of the committee of creditors of Reliance Capital, has moved NCLAT against an NCLT order.
"On February 2, the Mumbai bench of National Company Law Tribunal (NCLT) had ruled against holding a fresh round of auction for the takeover of Anil Ambani-promoted Reliance Capital (RCap) 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," the report quoted.
NCLT in its order said the bench allows Torrent Investments' application and declared that the challenge mechanism for financial bids stood concluded as on December 21, 2022, with the bid of the applicant at INR 8,640 crore being the highest.Torrent Investments had filed a plea on January 9, requesting the tribunal to quash the lenders' plan to hold a fresh auction for the takeover of Reliance Capital, it added.
Earlier, as part of the resolution process,Torrent Group with an offer of INR 8,640 crore emerged as the highest bidder in the e-auction held for Reliance Capital. In its regulatory filing on January 4th, Reliance Capital revealed that the NCLT Mumbai bench issued an interim order after bids of Torrent Power and Hinduja Group in the first round.
Reliance Capital was sent for debt resolution in November last year under the Insolvency and Bankruptcy Code, 2016. The Reserve Bank of India (RBI) on November 29, 2021 superseded the board of directors of Reliance Capital Ltd under Section 45 IE of the Reserve Bank of India Act, 1934 and appointed Shri Nageswara Rao Y as its administrator with effect from November 29, 2021.
