NCLT on February 2, allowed Torrent Investments' plea challenging bankers' decision to hold a fresh round of auction for the takeover of Reliance Capital.
However, in March, NCLAT allowed the CoC to hold an extended challenge mechanism or second round of auction in the insolvency case overturning the NCLT ruling, which had declared the extended challenge round proposed by Reliance Capital lenders illegal.
NCLAT ruled that the CoC reserved the power to renegotiate the bid amount, or to call for another round of auction in its commercial wisdom.
Torrent Investments had emerged as the highest bidder with a resolution plan of Rs 8,640 crore. However, post the conclusion of the second round, IIHL sent lenders a revised bid of close to Rs 9,000 crore in net present value (NPV) terms, prompting the lenders to seek another round of bidding, which was challenged by Torrent in NCLT.
However, lenders had subsequently moved the NCLAT against the ruling.
Torrent Investment then filed a plea before the Supreme Court for an urgent hearing. On March 20, the apex court refused to stay the order by NCLAT on another round of auction for the debt-ridden Reliance Capital.The National Company Law Tribunal (NCLT) on Wednesday reserved its order on Torrent Investment's plea against lenders accepting the resolution plan of Indusind International Holdings (IIHL), the investment arm of the Hinduja Group, to take over Anil Ambani-promoted Reliance Capital.
In its appeal, Torrent Investment said the matter is pending with the Supreme Court and if the tribunal approves IIHL's Rs 9,650 crore resolution plan it will become infructuous if the apex court rules against the Committee of Creditors (CoC) decision on the extended challenge mechanism.
However, the counsel for the administrator said, the apex court did not stay the proceedings on NCLAT's order on the extended challenge mechanism.
After hearing both counsels, the NCLT bench consisting of Virendrasingh Bisht and Prabhat Kumar reserved the order on Torrent Group's appeal.