Reliance Capital’s (Rcap) second round of auction continues to remain on hold as the lenders on January 25 chose to withdraw the appeal from National Company Law Appellate Tribunal (NCLAT) challenging the order of National Company Law Tribunal (NCLT) postponing the company’s insolvency proceedings.
The appellate tribunal observed that it would not be appropriate for it to comment on the case on merits, as NCLT is yet to pronounce the order.
What was argued?
Appearing for the lenders, Senior Advocate Kapil Sibal argued that they were losing money every week as the company’s auction is yet to be finalised. He stated that a huge public interest is involved as the lenders include entities such as Life Insurance Corporation (LIC) and Employees Provident Fund Organisation (EPFO), thus urging the NCLAT to vacate the status quo order. Sibal further said that a private company cannot get an order from the NCLT barring the lenders from discovering higher value for the company.