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NCLT allows correction in Reliance Capital's 90-day resolution timeline

IndusInd International Holdings (IIHL), representing the Hinduja Group, the chosen applicant for the indebted firm, must execute RCap's resolution plan by May 27

Reliance Capital

Reliance Capital

Vasudha Mukherjee New Delhi

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The National Company Law Tribunal (NCLT) has granted an appeal by Reliance Capital (RCap)'s administrator for a correction within 90 days of implementing the resolution plan. This adjustment aims to expedite the resolution process initiated in November 2021. The Hinduja Group, the chosen applicant for the indebted firm, is now required to execute the resolution plan by May 27.

In its ruling on February 27, the tribunal stated that the 90-day period would start once the group secured all necessary regulatory approvals. The Mumbai bench of the tribunal heard the case on Wednesday, specifying that the 90-day period for plan implementation would commence from the date of its earlier order.

According to the previous order, the 90-day countdown for payment initiation would begin from the date IndusInd International Holdings (IIHL), the entity representing the Hinduja Group's bids for RCap, obtains approvals from market regulator Sebi, Reserve Bank of India (RBI), and the Insurance Regulatory and Development Authority of India (IRDAI) to complete the resolution process.

However, the administrator sought to commence the 90 days from the day of the tribunal's judgment. The appeal, dated March 2, requested a correction for T-plus 90 days, with T representing the NCLT approval date.

On March 5, RCap's committee of creditors (CoC) urged the Hinduja Group to execute the resolution plan by the end of the month. This would align with prior discussions held between the CoC and the Hindujas.

RCap's CoC includes LIC, Employees Provident Fund Organisation, IndusInd Bank, and Deutsche Bank, along with various financial institutions, including IDBI Trusteeship Services and Broadpeak Investment Advisors.

IIHL had committed on December 13, 2023, to implement the resolution plan and make payments to lenders before March 31, a commitment reiterated by its representatives in a CoC meeting held on December 22, 2023.
 

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First Published: Mar 14 2024 | 11:23 AM IST

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