The Mumbai bench of the National Company Law Tribunal (NCLT) on Wednesday allowed an application filed by the administrator of Reliance Capital and directed Hinduja Group-owned IndusInd International Holdings Ltd (IIHL) to implement the resolution plan for the financial services holding company by May 27.
Reserve Bank of India-appointed administrator Y Nageswara Rao approached the tribunal seeking a correction in its February 27 order regarding the 90-day period for the implementation the resolution plan.
The division bench of Justice Virendra Singh G Bisht and technical member Prabhat Kumar allowed the application in an oral order.
On February 27, the tribunal approved IIHL’s Rs 9,650 crore resolution plan for Reliance Capital, which was earlier controlled by Anil Ambani.
“The period of 90 days for the implementation of the plan will start after the completion of conditions precedent as prescribed in clause 8.1 i.e., approval of IRDAI for the insurance business, Sebi approval for the securities business and RBI approval for the ARC business,” said the February 27 order.
Wednesday’s order means IIHL must complete the process and make payment by May 27.
Torrent Investments, the other bidder for the company, has challenged the sale process in the Supreme Court, where the matter is pending. The top court, however, has not stayed implementation of the resolution plan.
The lenders have been trying to close the transaction this fiscal year itself. Their legal counsel had written to the Hinduja Group, requesting to implement the resolution plan before the end of this month even as the bankruptcy court had given the winning bidder 90 days, ET reported last week.
