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Reliance Capital lenders move against NCLT verdict to stay auction

Reliance Capital lenders move against NCLT verdict to stay auction

Reliance Capital lenders move against NCLT verdict to stay auction
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By CNBCTV18.com Jan 25, 2023 1:12:54 PM IST (Published)

The Reliance Capital lenders argued that the National Company Law Tribunal's (NCLT) interim stay ordered is not permitted under law. 

Reliance Capital lenders on Wednesday moved the National Company Law Appellate Tribunal (NCLAT) by challenging the bankruptcy court verdict  to maintain the status quo on the firm's insolvency proceedings.

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The lenders argued that the National Company Law Tribunal's (NCLT) interim stay ordered is not permitted under law.
Last week, the NCLT had directed the firm's lenders to maintain the status quo and told all applicants to submit written notes.
The tribunal had postponed Reliance Capital's second auction, which was to be held on January 19 to Januar 23 as the NCLT Mumbai branch was not able to complete the hearing of all applicants' arguments.
The Mumbai bench, which is led by Justices Shyam Babu Gautam and Pradeep Narhari Deshmukh has been hearing the applicants daily since January 9, when Torren Investments had approached the tribunal to seek the halting of the Committee of Creditors' move for a the second auction or 'challenge mechanism'.
The hearing was completed on Friday, following which the applicants including the lenders, Torrent Investments, Hinduja, among others, wished to further file written notes on the same. So, the tribunal directed all applicants to submit their notes and keep the procedures that were to be conducted on Monday, on hold.
Torrent Investments had filed a plea seeking the quashing of the lenders' plans to hold a fresh auction for the takeover of Reliance Capital.
Last month, the Torrent Group and Hinduja Global had participated in the e-auctions, with the former making the highest bid of Rs 8,640 crore on December 21 for acquiring the NBFC firm set up by the Anil Ambani Group.
Two days later, Hinduja Global submitted a revised bid worth Rs 9,000 crore in net present value (NPV) terms for debt-ridden Reliance Capital to lenders, topping the offer made by Torrent Investment in the auction conducted as part of its resolution process. Hinduja submitted its bid after the e-auction process had ended.
However, Torrent, which had emerged as the top bidder to acquire RCap by the auction deadline, then objected the RCap’s Administrator from considering the revised offer from the Hinduja Group and stated that entertaining the revised offer would be a violation of process. It had pleaded with the NCLT to direct the RCap administrator to not accept the revised offer.
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