Updated: Feb 23
The National Company Law Appellate Tribunal (NCLAT) on Tuesday concluded its hearings over the petition filed by lenders of Reliance Capital presently going through the insolvency resolution process.
What is happening: 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.
Backdrop: 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.
The big picture: In the Reliance Capital matter, the challenge mechanism was concluded by the lenders on December 21, 2022, with Torrent's bid of Rs 8,640 crore being declared as the highest bid.
What else: Senior advocate Rohatgi contended that IBC is not a debt recovery platform and the Committee of Creditors should look beyond their individual recovery.
The numbers: Reliance Capital has a consolidated debt of about Rs 40,000 crore.
Read in short: Reliance Capital going through multiple bids and challenges was finalised to be acquired by Torrent which was questioned in the court to which the NCLT replied in support of Torrent.