The Mumbai-bench of the NCLT, led by Justice Shyam Babu Gautam and Justice Pradeep Narhari Deshmukh, directed the Committee of Creditors (CoC) to maintain status quo on the 'Challenge Mechanism' till the final order is passed by the tribunal in the week starting January 30.
The tribunal had concluded the hearing on Torrent Investments' plea seeking squashing the lenders' plans to hold a fresh auction for the takeover of Reliance Capital on Friday and asked all parties to submit written notes by Monday.
"We have perused the written notes of both sides. Having considered the same and as admittedly interim order is in force till today and the applications are already heard on merits and are closed for orders, we find no reason to not to continue the interim directions... all the more, the applications can be notified for pronouncement for order shortly in the week commencing from January, 30, 2023," the order stated.
In the circumstances, it said, interim order in force will continue inclusive of stay to second challenge mechanism, the order added.
Torrent Investments had filed a plea before the tribunal on January 9, seeking to squash the lenders' plans to hold a fresh auction for the debt-ridden Reliance Capital. Torrent Investment was the highest bidder offering ₹8,640 crore in the last round of the 'Challenge Mechanism'.
Reliance Capital has a consolidated debt of about ₹40,000 crore.
The Reserve Bank of India (RBI) had applied to initiate Corporate Insolvency Resolution Process (CIRP) against the Reliance Group company at NCLT Mumbai.
Subsidiaries of Reliance Capital include Reliance General Insurance, Reliance Nippon Life Insurance, Reliance Securities, Reliance Asset Reconstruction Company, Reliance Home Finance, and Reliance Commercial Finance.
RBI-appointed Nageswara Rao Y is the administrator of Reliance Capital's insolvency process.
