Mumbai, Aug 31 The Resolution of Reliance Capital is all set to get a green signal from NCLT as the tribunal is going to consider the Hinduja Group company IIHL's resolution plan for admission tomorrow.
The Rs 10,000 crore resolution plan of IIHL has already been approved by the lenders with 99.6 per cent votes in favour of the plan.
The NCLT on Wednesday reserved the order on Torrent Investment’s plea against lenders accepting the IIHL’s resolution plan.
According to legal experts, the NCLT is likely to dismiss Torrent’s application as the Supreme Court has dismissed a plea in a similar matter. In the matter of Meenakshi Energy, the Supreme Court bench headed by Justice Sanjiv Khanna, while dismissing the appeal before it, has passed an order upholding the Challenge Mechanism.
According to sources, based on this SC order, the NCLT is likely to follow the same path and dismiss Torrent’s plea. Prior to NCLT, Torrent Investment had approached SC and filed a plea seeking to restrain NCLT from considering IIHL's resolution plan, but in a setback to Torrent, the court refused to stay the proceedings before the NCLT.
Notably, the SC had given a go ahead to the lenders proposal for conducting a second round of auction for the Reliance Capital to maximise recovery from the sale of Reliance Capital assets. The Hinduja Group company, IIHL was the sole bidder in the second round of auction as Torrent decided not to participate in it.
The bench headed by Justice Sanjiv Khanna in its order dated August 25, stated, "it is clarified that we have not stayed the proceedings pending before the National Company Law Tribunal."
The SC has posted the matter for hearing in October. Citing the judgement of Meenakshi Energy passed by the same bench, legal experts feel that Torrent is unlikely to get any relief from the apex court.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor