Torrent Investments moves SC against National Company Law Appellate Tribunal decision

The Supreme Court on Monday said that it will hear the plea on March 20.

Torrent Investments Private Limited has filed the appeal under Section 62 of the Insolvency and Bankruptcy Code, 2016 assailing the order dated March 2, passed by the NCLAT principle branch.

The NCLAT has set aside the final judgment and order of the National Company Law Tribunal, Mumbai Bench dated February 2.

NCLAT had said Reliance Capital's Committee of Creditors (CoC) has the power to negotiate and call for a higher bid. The NCLAT had held that CoC is fully empowered as per the Clauses of RFRP to further negotiate with one or more Resolution Applicants, even after completion of Challenge Mechanism on December 21, 2022 and the decision of CoC taken on January 6, 2023 to undertake an Extended Challenge Mechanism is not violative of Regulation 39(1A).

The CoC may proceed to fix a date after two weeks for holding a Revised Challenge Mechanism or/and to take any steps for further negotiations with the Resolution Applicants as per the relevant Clauses of the RFRP and further exclusion of 30 days period is allowed, NCLAT said.

"By way of the Impugned Order, the Appellate Authority has erroneously concluded that even after conclusion of challenge mechanism as contemplated by Regulation 39(1A) of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations), the Committee of Creditors (CoC) is empowered to negotiate further with one or other resolution applicants or annul the resolution process and re-issue the request for resolution plan (RFRP)," the petitioner said.

"While coming to this conclusion the Appellate Authority has completely ignored the mandate of the Code to conduct the insolvency process in a time-bound manner, the arguments made by the Appellant in this regard have not even been dealt with," the petitioner said.

Torrent Investments Private Limited has filed the appeal before the Apex Court against National Company Law Appellate Tribunal, Principal Bench. (ANI)