Reliance Capital resolution: Setback for Torrent as NCLT rejects its plea

MUMBAI: In a setback for Torrent Investment, the NCLT's Mumbai bench has rejected its plea seeking a stay on the ongoing resolution process of Reliance Capital.

The NCLT will now hear the Reliance Capital resolution plan approval application of the administrator on September 26.

In its plea, Torrent Investment had sought NCLT's directions to keep the Reliance Capital resolution plan approval in abeyance till the final orders are passed by the Supreme Court.

Torrent had also asked the NCLT to direct IIHL - the successful resolution applicant, the administrator, and the COC to not undertake any further actions in respect of the conclusion of the resolution process of the Reliance Capital.

Notably, Torrent's application that had challenged the second round of auction for the sale of Reliance Capital assets is pending before the SC, but the apex court refused to grant any stay on the resolution process proceedings before the NCLT.

The counsel for the COC informed the court that due to the pendency of the resolution plan, the lenders of Reliance Capital are incurring a loss of Rs 42 crore per week.

While rejecting Torrent's plea, the NCLT stated that there is no stay from the Supreme Court on the proceedings before the tribunal. The court also said that Torrent did not participate in the second round of auction.

In June, the COC had approved the IIHL's Rs 9,800 crore resolution plan with 99.6 per cent votes. Post that, the Administrator had filed the final plan before the NCLT for approval.

Torrent challenged the COC's approval on the plan and tried to seek stay on the resolution process from the Supreme Court, but it refused to grant any stay on its application.