Lenders move against NCLT's verdict to stay Reliance Capital auction
The lenders have argued that the interim stay ordered by National Company Law Tribunal (NCLT) is not permitted under law.
January 25, 2023 / 09:38 AM IST
Lenders of Reliance Capital moved the National Company Law Appellate Tribunal (NCLAT) on January 25 to challenge the bankruptcy court order for maintaining the status quo on the company's insolvency proceedings.
The lenders have argued that the interim stay ordered by National Company Law Tribunal (NCLT) is not permitted under law.
Last week, NCLT directed the lenders of Anil Ambani-promoted Reliance Capital to maintain the status quo and asked all applicants to submit written notes.
The tribunal 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.
