The National Company Law Appellate Tribunal (NCLAT) allowed Reliance Capital (RCap) lenders to seek fresh bids under bankruptcy proceedings.
Once the National Company Law Tribunal (NCLT) determined that Torrent Investment's £864 million bid was the highest, lenders filed an appeal. Due to the Hinduja family's late bid of roughly £900 million, lenders demanded a new round.
According to the appellate tribunal's order, plan value cannot be the only aspect of the resolution plan that is modified or improved. The order stated: "We are of the considered judgment that Regulation 39(1A) does not restrict CoC (committee of creditors) from engaging with or urging resolution applicants to further improve the plan value.
According to the NCLT's order, the CoC cannot engage in talks after the challenge mechanism (a procedure in which all bidders are given the chance to outbid the highest bidder). Additionally, the tribunal stated that IndusInd International Holdings' (IIHL, or Hindjua's) proposal did not comport with the bid made available through the challenge system.