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Torrent Investments has filed an urgent plea with the Supreme Court against NCLAT’s March order, which set aside NCLT Mumbai’s February 2023 order and allowed the committee of creditors (CoC) to go ahead with the resolution process for Reliance Capital.
In its plea, Torrent alleged that during the course of the proceedings before SC, the CoC conducted the second challenge mechanism in April, and approved the Hinduja Group’s resolution plan in June. Further, it also filed a plan approval application despite the matter being pending and listed before NCLAT for further consideration on October 25.
Considering that the very genesis for the Second Challenge Mechanism has been challenged by Torrent, any subsequent developments post the second challenge mechanism, including approval and filing of the resolution plan, “are all conscious steps taken by the CoC and the Administrator to render the appeal as infructuous and cause prejudice”, the plea said.
This is in complete contravention of the SC order and provisions of IBC, said Torrent, seeking the apex court’s intervention to list the appeal and connected appeals for final disposal on the next scheduled date of October 11.
Torrent had first filed a plea with the apex court in March, when the SC had allowed the parties involved to continue resolution proceedings. Later, the NCLAT also concluded that IBC norms do not restrict the right of the CoC to continue negotiation on financials and conduct a second or extended challenge mechanism despite a successful first round. The matter was listed for final hearing/disposal in October 2023.
NCLAT’s order was in response to appeals by Vistra ITCL, acting on behalf of Reliance Capital’s lenders, and Torrent’s opposing bidder Hinduja Group’s IndusInd International Holdings.
In June, the CoC approved Hinduja’s bid of upfront cash worth ₹9,661 crore and a capital infusion of ₹400 crore in Reliance General Insurance. In September 2023, the Mumbai bench of the NCLT rejected Torrent’s plea for staying the resolution plan till the apex court makes a decision on the pending plea. NCLT said that Torrent had neither partook in the extended challenge mechanism, nor submitted a resolution plan.
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