 "SC to hear Torrent plea against NCLAT allowing 2nd RCap auction on March 20")
The Supreme Court has listed the plea of Torrent Group, a bidder of bankrupt firm Reliance Capital (RCap), challenging the National Company Law Appellate Tribunal (NCLAT) order to hold a second round of auction for RCap assets for hearing on March 20.
The second-round auction, scheduled for March 20, will not take place now, further delaying the resolution process of RCAP.
Earlier this month, the NCLAT order came on a petition filed by Vistra ITCL (India), which is one of the lenders of Reliance Capital, against NCLT order restricting further auction of the bankrupt firm.
Following the NCLAT order, the lenders' of RCap had decided to hold the second round of e-auction on March 20.
Torrent, after the first auction, was the highest bidder with a bid of Rs 8,640 crore for Reliance Capital. The CoC of Reliance Capital, opted for a second auction after Hinduja group made an offer of Rs 9,000 crore. Torrent challenged this before the Mumbai bench of NCLT (National Company Law Tribunal).
In February, NCLT held that the challenge mechanism for financial bids was concluded as on December 21, 2022, with the bid of Torrent Investments at Rs 8,640 crore being the highest. This order was challenged by the CoC of RCap in NCLAT.
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Vistra ITCL (India), one of the lenders of Reliance Capital, had moved NCLAT challenging an order of NCLT which restricted further auction of the bankrupt firm.
RCap was sent for debt resolution in November 2021 after the company defaulted on loans worth Rs 24,000 crore.