Harish Salve, in his submission stated that Torent Investment cannot enrich at the cost of taxpayers
The National Company Law Tribunal (NCLT) on Friday directed the lenders of Anil Ambani-promoted Reliance Capital to maintain the status quo and asked all applicants to submit written notes.
The tribunal on Wednesday postponed the second auction for Reliance Capital, which was scheduled for January 19, to January 23 (Monday) as the NCLT Mumbai bench could not complete the hearing of arguments of all applicants.
The NCLT Mumbai bench, led by Justice Shyam Babu Gautam and Justice Pradeep Narhari Deshmukh, has been hearing the applicants on a day-to-day basis since January 9, when Torrent Investments approached the tribunal seeking to halt the Committee of Creditors's move for a second round of auction or 'Challenge Mechanism'.
After the hearing was completed on Friday, applicants including the CoC represented by Kapil Sibal, Torrent Investments represented by Darius Khambata, IIHL represented by (Hinduja), represented by Harish Salve and Abhishek Manu Singhvi among others wished to further file written notes on the same.
Hence, the tribunal directed all the applicants to submit their written notes and to keep all procedures that were to take place on Monday, on hold.
Torrent Investments had filed a plea seeking the tribunal to quash the lenders' plans to hold a fresh auction for the takeover of the Anil Ambani-promoted Reliance Capital. Torrent Investments was the highest bidder offering Rs 8,640 crore.
"Value maximisation cannot be obtained by junking the Challenge Mechanism," Khambata stated.
Sibal on Thursday had said that this whole process (Torrent's plea) is 'ill advised' and against the maximisation of value.
Harish Salve, in his submission stated that Torent Investment cannot enrich at the cost of taxpayers.
"When the CoC is saying the bids were sub-optimal and wants to invite fresh bids, I accept it. Please allow the process to run the course, do not interfere," he added.
Reliance Capital has a consolidated debt of about Rs 40,000 crore.
The Reserve Bank (RBI) had applied to initiate Corporate Insolvency Resolution Process (CIRP) against the Reliance Group company at NCLT Mumbai bench.
Subsidiaries of Reliance Capital that are pushed for insolvency resolution are - Reliance General Insurance, Reliance Nippon Life Insurance, Reliance Securities, Reliance Asset Reconstruction Company, Reliance Home Finance, and Reliance Commercial Finance.RBI-appointed Nageswara Rao Y is the administrator of Reliance Capital's insolvency process.
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First Published: Jan 20 2023 | 8:41 PM IST