The Supreme Court on Friday ruled against Bombay HC’s December 2022 order dismissing the plea with respect to takeover of Reliance Home Finance by Authum Investments and Infrastructure.

Citing the similar case of Securities and Exchange Board of India vs Rajkumar Nagpal and Others, the apex court paved the way for the acquisition saying that the dissenting debenture holders should be provided an option to accept the terms of the resolution plan which proposed the takeover.

“Alternatively, the dissenting debenture holders will have a right to stand outside the proposed RP framed under the lender’s ICA (inter-creditor agreement) and pursue other legal remedies to recover their entitled dues,” the SC said in its order as accessed by businessline.

The SC asked Authum Investments to make the required payments by March 31.

SEBI’s objections

Authum Investments had on Monday told the top court that it is ready to implement the ₹2,887-crore resolution plan for Reliance Home Finance by March 31. However, SEBI had opposed the same alleging violation of its guidelines on voting process for debenture holders.

“We find that a different voting mechanism proposed under the SEBI Circular will further delay the resolution process and potentially disrupt the efforts undertaken by the stakeholders, including the retail debenture holders,” the order said, adding that such unscrambling of the resolution process will be both time-consuming and may affect the agreed realised gains to the retail debenture holders, who have already consented to the negotiated settlement before the High Court.

The apex court, therefore, allowed for the resolution plan to go through in order to protect the debenture holders, except the dissenting debenture holders, it said. 

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