Lenders of debt-laden Reliance Capital (RCap), who had filed an appeal before appellate tribunal against the bankruptcy court’s ruling to maintain status quo, have withdrawn their plea. The lenders, led by Vistra ITCL (India) Ltd, had moved NCLAT on Tuesday stating they were losing money due to the stalemate in the resolution process of the former Anil Ambani group company. They wanted the National Company Law Tribunal’s order on status quo to be quashed.
The National Company Law Appellate Tribunal (NCLAT) said it would not “express any opinion” as the issue has to be addressed by the adjudicating authority. The counsel, who appeared for the lenders, also sought permission to withdraw the appeal, which was also granted by the appellate tribunal.
This means that NCLT’s directions to put hold on all proceedings of RCap’s insolvency process will continue till the final orders are pronounced. The National Company Law Tribunal’s (NCLT) Mumbai bench is likely to pronounce an order next week.
Torrent Investments, a group company through which Gujarat-based Torrent Group had placed its bid for RCap, had earlier moved NCLT terming administrator’s decision to hold another round of challenge process as “illegal”.
Torrent Investments, a group company through which Gujarat-based Torrent Group had placed its bid for RCap, was the respondent in the case filed before NCLAT.
Earlier, the administrator of RCap had proposed to hold a second round of challenge mechanism on January 23, while the NCLT asked it to maintain the status quo till the next hearing. The administrator was looking to increase the proceeds to more than ?10,000 crore from the insolvency process by conducting a second challenge mechanism.
RCap’s administrator had earlier also 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 also maintain the bid amount they had earlier quoted.