Hearing on Torrent's plea in the RCAP resolution matter scheduled for Tuesday in SC
Supreme Court of India
Mumbai: A hearing regarding Torrent Investment's plea in the Reliance Capital resolution plan matter is set to take place in the Supreme Court on Tuesday.
Despite the approval of the Hinduja Group's resolution plan by lenders with an overwhelming 99.6 per cent vote five months ago, the resolution process for Reliance Capital has not reached its conclusion.
The Torrent plea, which had challenged the second round of auction for the sale of Reliance Capital assets, has been pending in the SC since April 2023.
The Supreme Court had refused to stay the second round of the auction, which was eventually held on April 26, 2023.
The Hinduja Group company, IIHL was the sole bidder in the second auction as Torrent Investment decided not to participate.
IIHL had made an all cash bid of Rs 9,800 crore. The IIHL's resolution plan was approved by the lenders with 99.6 per cent voting in favour of the plan, in June 2023, but despite that the resolution process of Reliance Capital has not attained finality due to the pending litigation in the SC and various procedural delays.
In August, Torrent Investment had once again approached the SC to prevent the NCLT from considering the IIHL resolution plan, but the court refused to stay the proceedings before the NCLT. The NCLT approval of IIHL's resolution plan is still pending, as the company has not yet received approvals from the Reserve Bank of India (RBI), Competition Commission of India (CCI), and Insurance Regulatory and Development Authority of India (IRDAI) on the resolution plan, which are prerequisites for final NCLT approval.
On October 3, Torrent Investment filed a Letter of Urgency before the Supreme Court, seeking an urgent hearing and final disposal of its pending appeals. In the letter, Torrent Investment argued that the Committee of Creditors (COC) of Reliance Capital conducted the second round of auction and approved IIHL's resolution plan during the pendency of its appeals before the Supreme Court.
They expressed concerns that these actions could render their pending appeals infructuous.