RCap insolvency: SC to hear Torrent plea today

While the second round of auction is also scheduled for Monday, it is unlikely to take place till the apex court gives its direction.

RCap, NCLAT
Vistra ITCL (India), a member of the committee of creditors (CoC), is a respondent to the case.

The Supreme Court will on Monday hear a petition filed by Torrent Group against the National Company Law Appellate Tribunal (NCLAT)’s order that permitted holding a second e-auction for Reliance Capital (RCap).

While the second round of auction is also scheduled for Monday, it is unlikely to take place till the apex court gives its direction.

Torrent Investments, a group company through which Gujarat-based Torrent Group had placed its bid for the entire assets of RCap, sought an urgent hearing of the petition seven days ahead of the second challenge mechanism.

Earlier this month, Torrent Group moved the Supreme Court against the NCLAT’s order that had permitted holding an extended auction for the debt-laden firm. Vistra ITCL (India), a member of the committee of creditors (CoC), is a respondent to the case.

Torrent had sought the Rs 9,000-crore bid by IndusInd International Holdings (IIHL), the firm through which the Hinduja Group had placed its bids, to be declared “invalid” as the offer was made after the completion of the first e-auction. Further, the group also wanted its ₹8,640-crore bid to be termed as the final one.

The NCLAT permitted holding a second e-auction for RCap, allowing the lenders’ plea who wanted to “maximise value” of the debt-laden firm as the bids received were “sub-optimal and unsatisfactory”.

Senior advocates Mukul Rohatgi and Shyam Diwan had appeared for Torrent in the Supreme Court while Pooja Dhar represented the CoC.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 20-03-2023 at 02:40 IST
Exit mobile version