Without staying the NCLT’s March 12 interim order, the NCLAT had last week partially allowed a joint lenders forum, led by State Bank of India, to sell mortgaged assets of the tower firm to Reliance Jio.
The National Company Law Appellate Tribunal (NCLAT) on Wednesday recalled its April 6 order that had allowed Reliance Communications’ subsidiary firm Reliance Infratel to proceed with sale of its tower and fibre assets. “In view of the order passed by the Supreme Court, dated April 16, 2018…interim order dated April 6, 2018 is recalled,” an NCLAT bench headed by justice SJ Mukhopadhaya said, while posting the matter for further hearing on April 23. Without staying the NCLT’s March 12 interim order, the NCLAT had last week partially allowed a joint lenders forum, led by State Bank of India, to sell mortgaged assets of the tower firm to Reliance Jio.
The order was challenged by HSBC Daisy Investments (Mauritius). Later, the apex court on Monday stayed the NCLAT order and asked Reliance Infratel to wait for two days till the appellate tribunal decided on the matter. Justice Mukhopadhaya had also asked the JLF to deposit sale proceeds in a separate escrow account and directed the parties to cooperate with execution of sale deeds. NCLT’s Mumbai bench had restrained Reliance Infratel and others from selling its assets and this was challenged by Reliance Infratel and SBI in the appellate tribunal.
NCLT’s order came on HSBC Daisy’s plea alleging oppression of minority shareholders and mismanagement for not taking their consent for the asset sale as per the articles of association of the company.
In July 2007, HSBC Daisy Investment, along with a clutch of other investors, had invested around Rs 1,100 crore in Reliance Infratel for around 5% stake, which has now come down to 4.26%.