![]() It sought clarification from IIHL and Torrent, including on draft resolution plan. On January 3, 2023, a CoC meeting was held and the process advisor informed the lenders that the NPV calculated on the basis of the financial proposal of Torrent and IIHL was different from the NPV submitted by the Resolution Applicants in the challenge mechanism. This was objected by Torrent and it moved NCLT, which had directed Reliance Capital's administrator not to submit any non-compliant plan to CoC. However, on December 23, 2022, a CoC meeting was conducted on the submission of the revised draft resolution plan as per the challenge mechanism with an email of IIHL which included additional payments totalling Rs 9,000 crore. ![]() IIHL participated until the third round of the challenge mechanism with a final NPV of Rs 8,110 crore and Torrent submitted a bid till fourth round with a final NPV of Rs 8,640 crore. On December 21, 2022, challenge mechanism process was conducted in which only two bidders - Torrent and IIHL participated. Torrent Investments was the highest bidder offering Rs 8,640 crore in the last round of the '' challenge mechanism''. Later, IIHL also filed a petition challenging the NCLT order. Torrent Investments had filed a plea on January 9, requesting the tribunal to quash the lenders' plan to hold a fresh auction for takeover of RCap. On February 2, NCLT said the challenge mechanism for financial bids stood concluded as on December 21, 2022, with Torrent Investments being the highest bidder at Rs 8,640. The move was challenged by Torrent Investments before the Mumbai bench of NCLT (National Company Law Tribunal). ![]() The appellate tribunal permitted the CoC to continue with the challenge mechanism and invite bids after two weeks. The court on March 13 had agreed to hear Torrent’s plea after NCLAT on March 2 allowed a petition by lenders of Reliance Capital for another round of auction for the debt-ridden firm undergoing the insolvency process.Ī two-member bench set aside an order passed by National Company Law Tribunal and said the Committee of Creditors (CoC) had the power to negotiate and call for a higher bid. The court also made it clear that the outcome of the auction will be subject to what is decided in the case. The court issued notice in the plea and permitted both the parties to partake in the second round of auction. The Supreme Court on March 20 refused a stay on National Company Law Appellate Tribunal (NCLAT) order, allowing the lenders of Anil Ambani-promoted Reliance Capital (RCap) to conduct another round of auction.
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