The National Company Law Appellate Tribunal (NCLAT) on Tuesday concluded its hearing and reserved its order over the petition filed by lenders of Reliance Capital seeking a second round of financial bids for the debt-ridden firm, presently going through the insolvency resolution process.
Senior advocate Mukul Rohatgi, representing Torrent Investments concluded his arguments and submitted that the Insolvency & Bankruptcy Code (IBC) intends for maximisation of the value, but the focus should be on the revival of the assets.
Rohatgi contended that IBC is not a debt recovery platform and the Committee of Creditors should look beyond their individual recovery.
"Focus should be on viability and feasibility," he said.
On Monday, senior advocate Kapil Sibal representing for lenders had submitted that the intent of IBC is to maximise the value of the assets and the Committee of Creditors are free to negotiate the terms NCLAT was hearing a petition filed by Vistra ITCL (India), one of the lenders of Anil Ambani-promoted Reliance Capital, challenging an order of the NCLT which restricted further auction of the bankrupt firm.
The Mumbai bench of the NCLT (National Company Law Tribunal), on February 2, had said the challenge mechanism for financial bids stood concluded as on December 21, 2022, with the bid of Torrent Investments at Rs 8,640 crore being the highest.
Torrent Investments had filed a plea on January 9, requesting the tribunal to quash the lenders' plan to hold a fresh auction for the takeover of RCap. Later, the Hinduja group firm also filed the petition challenging the NCLT order.
Torrent Investment was the highest bidder offering Rs 8,640 crore in the last round of the 'challenge mechanism'.
Reliance Capital has a consolidated debt of about Rs 40,000 crore.
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