Credit Suisse has said that the CoC (committee of creditors) for the resolution of Reliance Capital does not have the power to approve the resolution plan pending litigation in the National Company Law Tribunal (NCLT).

The administrator of Reliance Capital had rejected Credit Suisse’s claim of being a financial creditor with a debt of ₹660 crore (as of December 2021) in February 2022. This was challenged by Credit Suisse and the matter is pending in NCLT, Credit Suisse said in a letter accessed by businessline.

Credit Suisse AG, Mumbai branch is the onshore security trustee acting on behalf of the lenders—Credit Suisse AG (Singapore branch), Federal Bank and Far Eastern International Bank. The claim pertains to Credit Suisse being a secured creditor by way of Reliance Capital’s entire shareholding in Reliance General Insurance in favour of IDBI Trusteeship Services.

Read: NCLT extends RCap resolution deadline till July 16 

In the letter, it requested the administrator not to proceed with any discussion on the resolution plan, much less its finalisation as the NCLT’s decision on the claim will have a bearing on the constitution of the CoC, consequent voting rights vis-à-vis the approval of the resolution plan, and distribution of the proceeds, among other things.

The CoC in the process of reviewing the ₹10,000 crore bid by IndusInd International Holding, the sole bidder in the extended challenge mechanism held on April 26.

Approval of any resolution plan would not only be bad in law but “travesty of justice” and go against the intent of the IBC, the letter said, adding that it is warranted that a decision on the resolution plan be taken after the NCLT’s decision.

“The cost of CIRP would invariably increase in the event the resolution plan has to test waters post the decision of the Claim Rejection IA which would then once again lead to reconstitution of the CoC. Besides, it would also lead to multiplicity of proceedings that would emanate from such unilateral action.”