n a move that is likely to further delay Reliance Capital’s (RCap) insolvency proceedings, Gujarat-based Torrent Investments has sought Supreme Court’s intervention and to hear its pending pleas before the resolution plan is approved.
This comes at a time when the final approval from the National Company Law Tribunal’s (NCLT) Mumbai and Supreme Court’s approvals are needed to complete the former Anil Ambani group company’s insolvency process.
In its letter of urgency filed before the Supreme Court on October 3, Torrent Investments, a Torrent Group company, has sought the apex court’s intervention for an “urgent hearing and final disposal of all pending appeals”. The firm, a bidder in the first round of auctions, had earlier challenged the second round of auctions convened for the sale of RCap’s assets.
As the second challenge mechanism (SCM) has been challenged by the appellant, any subsequent developments pursuant to the conduct of the SCM are all “conscious steps taken by the Committee of Creditors (CoC) and administrator to render the appeal filed by the appellant as infructuous and cause prejudice to the appellant”, Torrent Investments said in the filing.
This is in complete contravention of the orders of the Supreme Court and the relevant provisions, it added.
RCap’s second round auction was held on April 26, 2023, where Hinduja Group company IndusInd International Holdings (IIHL) was the sole bidder. While Torrent Investment did not participate in the auction, IIHL – which was the sole bidder – made an all-cash bid of Rs 9,800 crore.
Torrent Investment later moved NCLT terming administrator’s decision to hold another round of challenge process as “illegal”.
In June this year, RCap lenders approved IIHL’s resolution plan with 99.6% votes and the plan is currently pending before the NCLT’s Mumbai bench for final approval. NCLT will hear the resolution plan for approval on October 25.
In its letter, Torrent Investments sought the apex court’s intervention and to hear all pending appeals with the final disposal on the next date of October 11.
This is the second time – the earlier one in August with the court declined the request to stay the proceedings – Torrent has sought the Supreme Court’s intervention in RCap insolvency issue.
In July, RCap’s administrator for the insolvency process filed the resolution plan submitted by the Hinduja Group before the NCLT for its approval.