NEW DELHI: In a last-ditch attempt, Torrent Investments has moved an urgent plea at the Supreme Court to get a stay against approval of IIHL’s resolution plan for Reliance Capital.
In a plea filed before the apex court on 3 October, Torrent Investments has sought the court’s intervention for an urgent hearing and final disposal of its pending appeals that had challenged the second round of auction for the sale of Reliance Capital assets.
Torrent Investments in its plea before the court has said that during the pendency of its appeals before the Supreme Court, the Committee of Creditors (COC) of Reliance Capital not only conducted the second round of auction, but also approved the resolution plan of IIHL and proceeded to file a plan approval application before the NCLT.
In the second round of auction for Reliance Capital held on 26 April 2023, Hinduja Group’s IIHL was the sole bidder, and it made a cash bid of R 9,700 crore.Torrent Investments decided not to participate in the auction.
Lenders are expected to receive about R10,200 crore (apart from IIHL’s R9,700 crore, lenders would receive R500 crore in cash balance with Reliance Capital) against their total admitted claims of R16,000 crore, resulting in 65%recovery for the lenders, sources said.
Attempt to stop NCLT from considering IIHL plan
Torrent had earlier attempted to prevent NCLT from considering the IIHL resolution plan, but the Supreme Court on 25 August refused to stay the proceedings before the NCLT. In the first round of auction, Torrent Investments had offered to pay R8,640 cr, while IIHL had put a bid of R8,110 cr. But both the amounts were far below the liquidation value (R13,000 cr) of Reliance Capital.