RTIL’s largest investor moves NCLAT

Rajesh Kurup Mumbai | Updated on January 30, 2019

In a fresh development, Finquest Financial Solutions — the largest investor in debt-ridden RTIL (formerly Reid & Taylor (India) Ltd) — has moved the National Company Law Appellate Tribunal (NCLAT) challenging an NCLT order.

The firm is challenging NCLT’s January 15 order, which had directed the Resolution Professional (RP) to entertain Gujarat-based CFM Asset Reconstruction’s (CFM ARC) claim and permit it to submit a resolution plan to restructure the company. The apex court, which admitted the petition, has posted the matter to February 1 for final arguments.

“Finquest Financial is aggrieved by the January 15 order where the NCLT permitted CFM ARC to submit a resolution plan to revive Reid & Taylor India despite the efflux of statutory 270-day period. The company’s plea came up before NCLAT on January 29 and notices were issued to the respondents, giving them two days time to file their replies,” Sunil Fernandes, advocate-on-record, Supreme Court of India, told BusinessLine.

The appellate tribunal also rejected a plea by RTIL workers association to implead them in the appeal.

Earlier, CFM ARC, the latest investor to join bid for beleaguered RTIL, submitted ₹2 crore as partial Earnest Money Deposit (EMD) following a directive by NCLT.

The tribunal also gave two weeks time to complete the due diligence process. The tribunal also directed CFM ARC to participate in the resolution process as a sole bidder, rejecting a plea to include Hong Kong-based SPGP Holding to be brought in as a co-applicant, and directed the resolution professional to provide required data after the investor signs a non-disclosure agreement (NDA).The matter is coming up for hearing at NCLT on January 31.

Second petition

Finquest Financial also challenged another NCLT order wherein the tribunal said that RTIL’s petition will be given an extension.

On January 1, NCLT Mumbai, had stated that the time the tribunal takes to decide the application will be excluded from the 270 days and will be given an extension. The 270-day period under the Corporate Insolvency Resolution Process (CIRP) to conclude RTIL case had ended on January 1, Fernandes said.

“The grounds on which this petition is filed is that the Supreme Court and the appellate tribunal have specified certain situations under which the 270-day period can be extended. This was also admitted by NCLAT, with the hearing posted for February 1,” he added.

Published on January 30, 2019

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