The National Company Law Tribunal (NCLT) will consider Hinduja Group’s resolution plan for the insolvency process of Reliance Capital (RCap) on Wednesday, after the Supreme Court refused to stay proceedings before the appellate tribunal.
The move comes after the Supreme Court on Friday refused to stay the proceedings before the National Company Law Appellate Tribunal (NCLAT).
However, as of now, there is no clarity on how RCap’s life insurance joint venture with Japan’s Nippon Life, Reliance Nippon Life Insurance Company (RNLIC), will be nullified under the resolution plan, sources close to the development said. Nippon Life holds a 49% stake in the RNLIC, while the remaining 51% is held by RCap.
In June, the lenders to RCap voted in favour of the resolution plan submitted by the Hinduja Group with 99.6% of votes. Later, the debt-laden firm’s administrator filed the approved plan with the NCLT.
The lenders will receive Rs 10,000 crore from IndusInd International Holdings (IIHL), the company through which the Hinduja Group had placed its bids, which includes Rs 9,661 crore of upfront cash.
Following the approval of the NCLT Mumbai, the plan should be cleared by the Supreme Court. In March this year, Gujarat-based Torrent Group had moved the apex court against an NCLAT order that permitted holding a second e-auction for the bankruptcy firm.
RCap has been in insolvency since November 29, 2021, when the RBI had superseded its board.