The bankruptcy tribunal has directed to put on hold all proceedings of Reliance Capital’s (RCap) insolvency process till its final order, which is likely to be pronounced next week.
The National Company Law Tribunal’s (NCLT) Mumbai Bench during a hearing on Monday said the applications have been heard on merit and are closed for orders.
“The applications can be notified for pronouncement for order shortly in the week commencing from January 30,” the tribunal said.
“In the circumstances, the interim order in force to continue inclusive of stay to second challenge mechanism. Needless to state that any action or decision taken subsequent to filing of present interlocutory application shall be subject to the outcome of final decision in the application,” the tribunal said in the order, adding it had perused both sides’written notes.
The administrator of RCap had proposed to hold the second round of the auction today, depending on the ruling by the bankruptcy court. Last week, the NCLT had asked the bidders and lenders to maintain the status quo till today.
Senior Counsel Mukul Rohatgi, appearing for Torrent Group, had opposed the prayer to not to extend the interim order.
RCap’s administrator had earlier sought assurances from Torrent Group and Hinduja Group – the final bidders for the entire assets of the debt-laden firm – that they will not withdraw their bids and maintain the bid amount they had earlier quoted.
Earlier on January 18, the counsel for IndusInd International Holdings Ltd (IIHL), the group company through which the Hindujas had placed bids, had stated that they will not withdraw from the challenge mechanism and “continue to hold the field”.
The lenders to the former Anil Ambani group company had earlier planned to hold the second round of e-auction last week, which was pushed to this week following directions from the tribunal.
Torrent Investments, a group company through which Gujarat-based Torrent Group had placed its bid for RCap, earlier moved the NCLT, terming the administrator’s decision to hold another round of auction as “illegal”.