NCLT nixes Torrent plea over RCap resolution approval

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Reliance Capital’s resolution plan till the Supreme Court passed a final order. In April, the Hinduja Group emerged as the sole bidder for turning around the debt-laden firm, after the lenders completed the extended challenge process. The NCLT must now approve the Hindujas’ resolution plan, to complete the process under the Insolvency and Bankruptcy Code.

Torrent, in its plea, sought the tribunal’s intervention to keep RCap’s resolution plan in abeyance till the final order. It also urged the NCLT to direct Hinduja Group-owned IndusInd International Holdings, the administrator of Reliance Capital, and the committee of creditors, not to undertake any further action on concluding the resolution process. “With respect to the apex court’s order of March, it is an undisputed fact that the applicant (Torrent) has not participated in the extended challenge mechanism nor has it submitted a resolution plan," an NCLT bench comprising justices Virendrasingh Bisht and Prabhat Kumar said.

Last December, Torrent was one of the highest bidders with a bid of ₹8,640 crore for RCap, but IndusInd soon submitted a revised bid of ₹9,000 crore, leading to a dispute between these bidders. While rejecting its plea, the NCLT said the apex court did not grant a stay on the proceedings at the tribunal, while the lenders argued that pendency of the plan is resulting in a weekly loss of ₹42 crore. After this, the CoC decided to propose an extended challenge mechanism.