The administrator of bankrupt Reliance Capital Ltd has approached the National Company Law Tribunal (NCLT) seeking its intervention to compel Hinduja Group’s IndusInd International Holdings Ltd to adhere to the approved resolution plan by making payments by 28 May.
In its petition, the administrator has emphasized the potential harm to Reliance Capital if the application is not granted. The tribunal recently sanctioned IIHL’s ₹9,650-crore resolution plan to acquire Reliance Capital, concluding a two-year legal dispute by the Hinduja Group. The plan must be executed within 90 days of the order issued on 27 February.
However, pending regulatory clearances, including approvals from the Insurance Regulatory and Development Authority (IRDA), Securities and Exchange Board of India (SEBI), and the Competition Commission of India (CCI), have delayed the process. While the Reserve Bank of India (RBI) approved Reliance Capital’s acquisition in November, lenders are concerned about payment delays due to ongoing regulatory procedures, which may take anywhere from three months to a year.
Furthermore, the administrator has noted certain inadvertent errors in the tribunal’s 27 February order and has filed a petition for corrections. The matter is scheduled for a hearing on 11 February.
Under India’s Insolvency and Bankruptcy Code, NCLT has the authority to rectify any inadvertent errors in its orders. The administrator’s plea seeks rectification of the order regarding the necessity of IRDA approval for a change in control of Reliance General Insurance Co. Ltd, Reliance Health Insurance Co. Ltd, and Reliance Nippon Life Insurance Co. Instead, the proposed correction states that the resolution applicant must apply to IRDA for the aforementioned companies, with assistance provided by the administrator and Committee of Creditors as needed.
