Reliance Capital insolvency: NCLT rejects Torrent's plea, to hear Hinduja's plan

National Company Law Tribunal (NCLT) will hear on September 26 resolution plan for debt-ridden Reliance Capital submitted by Hinduja Group firm IndusInd International Holdings Ltd (IIHL) as Torrent Investments' plea to keep decision in abeyance has been rejected.

Mumbai bench of insolvency tribunal has rejected Torrent's plea to keep application for approving IIHL's resolution plan in abeyance till a final order is passed by Supreme Court in matter. 

matter was listed for hearing on Tuesday before insolvency tribunal, however, it has now been journed to September 26.

NCLT said Supreme Court on plea filed by Torrent has 'abundantly' me it clear that it would be kept in abeyance until parties have h an opportunity to obtain circulation and interim orders of stay in proceedings. 

However, so far "Supreme Court did not stay proceedings before us," said a two-member NCLT bench on September 1, 2023.

Besides, it was also submitted that pendency of plan is resulting in a loss amounting to Rs 42 crore weekly to lenders of Reliance Capital. 

"Considering, aforesaid backdrop of facts and circumstances, it is appropriate that resolution plan application be heard," NCLT h said while rejecting Torrent Investments' plea. 

tribunal also said that apex court h on March 20, 2023, reserved rights of parties to participate in Swiss challenge process. 

"However, it is an undisputed fact that Applicant (Torrent) has not participated in extended challenge mechanism nor has Applicant submitted Resolution Plan," it said. 

Earlier, National Company Law Appellate Tribunal (NCLAT) h on March 2 allowed plea of lenders of Reliance Capital to hold an extended challenge mechanism or second round of auction for sale of debt-ridden financial services company. 

It h said lenders of Anil Ambani-promoted Reliance Capital h power to negotiate and call for a higher bid. It overturned an order of Mumbai bench of National Company Law Tribunal (NCLT) which h declared extended challenge round illegal. 

NCLAT ruled that Committee of Creditors (CoC) can renegotiate bid amount or call for anor round of auction in its "commercial wisdom". 

This order of NCLAT was challenged by Torrent before Supreme Court. 

corporate Insolvency Resolution Process (CIRP) against Reliance Capital was initiated by NCLT on November 29, 2021. company has a consolidated debt of about Rs 40,000 crore. 

An RFRP was issued on April 26, 2022, and four Resolution Applicants -- Torrent Investments, IIHL, Cosmea Financial-Piramal Group and Oaktree Capital submitted ir bids. 

CoC opined that bid values that have been received are not acceptable and challenge mechanism process was initiated. 

On December 21, 2022, challenge mechanism process was conducted in which only two bidders - Torrent and IIHL participated.