NCLT to hear RCAP Resolution Plan matter on Sep 12, unlikely to take any decision

Mumbai : A hearing for an approval of the resolution plan of the Reliance Capital is scheduled for September 12 (Tuesday) in NCLT Mumbai but the tribunal is unlikely to take a final call on the Hinduja Group company IIHL’s Resolution Plan in Tuesday’s hearing.

According to sources, the main reason for NCLT not taking a final decision on the resolution Plan is due to the impending order on Torrent Investment’s plea that had challenged the Committee of Creditors (COC) decision to approve the IIHL’s Resolution Plan. 

The NCLT has reserved its order on Torrent’s plea, and it is unlikely to approve the resolution plan without delivering its final verdict on Torrent’s application. 

The second reason for NCLT likely to defer a decision is that the lenders have not yet received an approval from RBI and CCI on IIHL’s resolution plan, which is a prerequisite for NCLT approval. 

In addition, the Supreme Court in August had adjourned the hearing on Torrent’s application, which challenged the second round of auction, to October. 

Hence, NCLT may not like to take a final decision on the resolution plan approval till there is an absolute clarity on the matter from the apex court. 

Under the circumstances, the matter is most likely to be adjourned by the NCLT Mumbai.  

The IIHL’s Rs 10,000 crore resolution plan for Reliance Capital was approved by the COC with 99.6 per cent voting on June 29. 

Post that, the plan was filed before NCLT for its final approval, but due to the litigation by Torrent Investment, the final approval will take some more time.