RCap Resolution: NCLAT issues notices to Torrent Investments and others at the lender’s plea

• The appeals court has ordered the petition to be listed on February 9, 2023 and says the appeal will be heard and decided by it.
• Vistra ITCL (India) Ltd, one of the members of the Reliance Capital Creditors’ Committeehas moved NCLAT against one NCLT order.
• She maintained the plea Torrent investments challenging bankers’ decision to go for the second round of auctions in pursuit of higher value for the bankrupt company.

The National Appellate Body for Business Law (NCLAT) issued notices Tuesday to Torrent Investments and other respondents regarding a petition filed by Reliance Capital’s lender seeking a second round of financial bids for the debt-ridden company, which is currently going through insolvency. A two-member NCLAT bench headed by Justice President Ashok Bhushan issued notices, directing respondents to submit responses within 3 days.

The appeals court has ordered the petition to be listed on February 9, 2023 and says the appeal will be heard and decided by it.

Vistra ITCL (India) Ltd, one of the members of the Committee of Creditors Trust Capitalmoved NCLAT against an NCLT order.

On February 2, the Mumbai bench from National Company Court (NCLT) had spoken out against holding a new round of auction for the acquisition of Anil Ambani PhD Reliance Capital (RCap) and said its financial bid challenge mechanism has already been finalized.

It upheld Torrent Investments’ plea to challenge bankers’ decision to go for the second round of auctions in search of higher value for the bankrupt company.

NCLT said in its order that the bank is allowing Torrent Investments’ application and stated that the financial bid challenge mechanism was closed on 21 December 2022 with the applicant’s bid being the highest at Rs 8,640 crore.

Torrent Investments had entered a plea on January 9 asking the tribunal to overturn the lenders’ plan to hold another auction for the acquisition of RCap.

Torrent Investment was the highest bidder offering Rs 8,640 crore in the latest round of the ‘challenge mechanism’.

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

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