Torrent moves SC against approval of Reliance Capital resolution plan
After its plea to stay the approval of Reliance Capital’s resolution plan was rejected by the NCLT on 1 October, Torrent Investment has once again approached the Supreme Court.
In a Letter of Urgency filed before the SC on 3 October, Torrent Investment has sought the apex court’s intervention for an urgent hearing and final disposal of its pending appeals that had challenged the second round of auction for the sale of Reliance Capital assets.
The second round of auction for Reliance Capital was held on 26 April 2023, where Hinduja Group company, IIHL was the sole bidder, as Torrent Investment decided not to participate in the auction. IIHL had made an all-cash bid of Rs 9800 crore.
In June, the Reliance Capital lenders approved the IIHL’s resolution plan with 99.6% voting, and the plan is currently pending before the NCLT for its final approval.
This is not the first time that Torrent Investment has sought SC’s intervention to stymie the approval of IIHL’s Resolution Plan by the tribunal. Torrent’s earlier attempt to prevent NCLT from considering the IIHL resolution plan had been unsuccessful as the SC, on 25 August, had refused to stay the proceedings before the NCLT.
In a fresh letter of urgency, the Torrent Investment has stated that during the pendency of its appeals before the SC, the Committee of Creditors (COC) of Reliance Capital have not only conducted the second round of auction, but approved the resolution plan of IIHL and proceeded to file a plan approval application before the NCLT, which is currently pending and listed for further consideration on 25 October 2023.
The letter further states that all the conscious steps taken by the COC and Administrator like conducting a second round of auction, approval of IIHL’s resolution plan, filing of the plan for NCLT approval, will render its pending appeals infructuous.
In view of these developments, the Torrent Investment has sought SC’s intervention to hear its pending appeals for final disposal on 11 October 2023.
Also Read: Reliance Capital lenders approve IIHL resolution plan with 99.6% votes
