NCLAT Rejects Reliance Capital’s Creditor Plea To Vacate Status Quo Order

Torrent Investment which emerged as the successful bidder for Reliance Capital with a bid of Rs. 8640 Crores filed an application before NCLT Mumbai challenging the fresh revised bid of Rs. 9400 Crores submitted by Hinduja Group and the NCLT Mumbai vide its order dated 03.01.2023 directed to maintain status quo.

Subsequently, the COC of Reliance Capital decided to hold another round of auction which was challenged by Torrent Investment before NCLT Mumbai. NCLT Mumbai head the parties reserved the order on 23.01.2023 and directed the parties to maintain the status quo regarding the CIRP of Reliance Capital until the order is pronounced in the week commencing 30^th January.

Senior Advocate Kapil Sibal appeared on behalf the Vistra ITCL before the Appellate Tribunal and contended that NCLT cannot interfere with the COC commercial wisdom to approve an extended round of challenge for the Prospective Resolution Applicants of Reliance Capital.

Senior Advocate Darius Khambata along with Senior Advocate Ramji Srinivasan & Arun Kathpalia appeared for Torrent Investment and apposed the plea of Vistara ITCL on the ground that NCLT already stated that it will pass final order in week commencing 30^th January and therefore, there is no illegality in maintaining status quo till the final order.

After hearing the parties, the Bench was not inclined to pass any interim order and thereafter Vistra ITCL sought permission to withdraw the appeal and accordingly, the appeal was dismissed as withdrawn.

Case Detail: Vistra ITCL v. Torrent Investments, CA(AT)(Ins) 87/2023

For Appellant: Mr. Kabil Sibal, Sr. Advocate with Mr. Piyush Mishra, Ms. Pooja Dhar, Mr. Sanjeev Kumar, Mr. Anshul Sehgal, Mr. Divyanshu Jain, Mr. Rishabh Parikh, Ms. Anusha Nagarajan, Advocates Mr. Pratul Pratap Singh

For Respondents: Mr. Darius Khembata, Mr. Ramji Srinivasan, Mr. Arun Kathpalia, Sr. Advocates with Mr. Anoop Rawat, Mr. Vaijayant Paliwal, Mr. Rishabh Jaisaini, Mr. Sagar Dhawan, Mr. Nikhil Mathur, Mr. Daksh Kadian, Mr. Aditya Dhupar, Mr. Kshitij Wadhwa, Ms. Shruti Pandey, Advocates Mr. Gopal Jain, Sr. Advocate, Mr. Vijayendra Pratap Singh, Ms. Anindita Roy Chowdhury, Mr. Bharat Makkar, Mr. S. Garg, Advocates for R-2. Mr. Mahesh Agarwal, Ms. Niyati Kohli, Mr. Pratham Vir Agarwal, Advocates for R-9.

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