In the alternative, the real estate firm also asked the HC to restrain RCap from transferring, selling or creating third-party rights with regard to 5% RNAM shares or any other assets or deposit the sale proceeds to the said extent till the Ambani firm discharged its liability.
The Delhi High Court has restrained Anil Ambani-led Reliance Capital (RCap) from selling 5% stake in Reliance Nippon Life Asset Management (RNAM) till December 16, the next date of hearing. The order was passed on a petition filed by Mazson Builders, a Shapoorji Pallonji firm, seeking recovery of around Rs 77 crore from RCap.
Justice JR Midha on Tuesday passed the order after Mazson Builders sought a direction to RCap to deposit Rs 76.82 crore with the court till the arbitration between the two is over. In the alternative, the real estate firm also asked the HC to restrain RCap from transferring, selling or creating third-party rights with regard to 5% RNAM shares or any other assets or deposit the sale proceeds to the said extent till the Ambani firm discharged its liability.
Senior counsel Sandeep Sethi, appearing for the real estate firm, said that “RCap is highly indebted and 5% RNAM shares are the only major asset of the Reliance ADA group which can be liquidated for recovery of its legitimate dues, since the only major asset is also under the risk of being diverted.” He alleged that RCap was acting contrary to the contractual agreements by making false promises to honour the terms of the Inter Corporate Deposit Facility Agreement of June 21, 2009, the date when the SP group firm provided Rs 75-crore facility to RCap for general corporate purposes including repayment of existing loans and advances.
But senior counsel Rajiv Nayyar, appearing for the Reliance company, opposed Mazson’s plea, saying no preferential treatment can be given to unsecured creditors over secured creditors and any arrangement has to be for the benefit of all the lenders.
Mazson Builders told the high court that RCap during a meeting in October had told the builder that it was expecting Rs 850 crore from sale of 5% RNAM shares and the sale proceeds would be more than sufficient to repay the entire facility. However, the cheques were dishonoured on November 11 due to insufficient funds.
RCap had assured it that it was capable of servicing its debts and would timely repay the facility. And even RCap had issued a demand Promissory Note and two post-dated cheques dated September 12, 2019 in its favour towards repayment of the facility amount and interest, the builder said. “Due to failure in repaying the loan amount plus interest thereon in terms of the RCL, ICD agreement, the respondent is thus in default,” it said, while alleging that the available finances were being internally routed and not being utilised to repay its outstanding dues and this is the proof that RCap is “negligent and is willfully in default of its obligations.