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

learn more about Shrabona Ghosh

By Shrabona Ghosh

Twitter

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

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 The Reserve Bank of India (RBI) on November 29, 2021 superseded the board of directors of Reliance Capital Ltd under Section 45 IE of the Reserve Bank of India Act, 1934 and appointed Shri Nageswara Rao Y as its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.

Shrabona Ghosh

Correspondent

A journalist with a cosmopolitan mindset. I lead a project called 'Corporate Innovations' wherein I cover corporates across verticals and try to tell stories on innovations. Apart from this, I write industry pieces on FMCGs, auto, aviation, 5G and defense. 

Related Topics

Thought Leaders

The Collapse of Credit Suisse: A Cautionary Tale of Resistance to Hybrid Work

This cautionary tale serves as a reminder for business leaders to adapt to the changing world of work and prioritize their workforce's needs and preferences.

News and Trends

Uravu Labs Raises $2.3 Million In Seed Funding

With the funding, the startup aims to take a significant step towards commercializing renewable water solutions, primarily directing the funds towards scaling up and forging new partnerships with leading players in the hospitality and beverage sector to expand their reach and impact

Leadership

5 Winning Habits That Will Transform Your Leadership Skills

Ready to take your leadership skills to the next level? Discover the five winning habits that will transform you into an exceptional leader!

Lifestyle

4 Ways To Negotiate For A Good Salary

Negotiating a salary can be an intimidating task for many, especially for those who are just starting their careers. However, with the right approach and mindset, this can become a smooth and successful process.

Living

21 Productive Things to Do During Your Commute

How to use this frustrating "wasted time" to get smarter, more focused and re-energized.