Torrent to move Supreme Court against NCLAT order allowing second auction of Reliance Capital

Torrent to move Supreme Court against NCLAT order allowing second auction of Reliance Capital

While the petition has not been listed yet, the matter is likely to be taken up soon

It is reported that the Torrent Group, a bidder of the bankrupt firm Reliance Capital (RCap), has decided to move the Supreme Court challenging the order of the National Company Law Appellate Tribunal (NCLAT) to hold a second round of auction for RCap assets.

The NCLAT order came recently after a petition was filed by Vistra ITCL (India), one of the lenders of RCap, against the National Company Law Tribunal (NCLT) order restricting further auction of the bankrupt firm.

After the NCLAT order, the lenders of RCap decided to hold the second round of e-auction on March 20. Earlier, in the first auction, Torrent was the highest bidder with a bid of Rs.8,640 crores.

The CoC of RCap opted for a second auction after the Hinduja Group made an offer of Rs.9,000 crores. Torrent challenged this before NCLT’s Mumbai bench.

In February, NCLT held that the challenge mechanism for financial bids was concluded on 21 December 2022. At that time, the bid of Torrent Investments at Rs.8,640 crores, was the highest. But the CoC of RCap challenged the order in NCLAT.

RCap was sent for debt resolution in November 2021 after the company defaulted on loans worth Rs.24,000 crores.