Hinduja Group bats for 2nd round of auction in RCap case

NEW DELHI: Hinduja Group’s IIHL, in its appeal before the National Company Law Appellate Tribunal (NCLAT), has said it is batting for higher valuation for the stakeholders of Reliance Capital. The tribunal will hear the appeal on Friday along with the appeal filed by the Committee of Creditors (COC)

IIHL said NCLT has committed a grave error of jurisdiction in interfering with the commercial decision of the committee of creditors of Reliance Capital to conduct a second round of auction. NCLAT, on Tuesday, had issued notices to Torrent Investments and other respondents on a petition filed by the lender of Reliance Capital seeking a second round of financial bids for the debt-ridden firm, currently going through insolvency resolution process.

In its appeal, IIHL said the adjudicating authority has glossed over the fact that Torrent is not a successful resolution applicant as the evaluation is at an intermediate stage where the COC is undertaking a price discovery exercise for maximisation of asset value. The adjudicating authority failed to envisage that Torrent, as one of prospective resolution applicants, is merely a participant in the insolvency resolution process and would not have any locus to stall the resolution process.