RCap lenders withdraw petition against IndusInd International Holdings at NCLAT

New Delhi: Lenders of debt-ridden Reliance Capital have withdrawn petition filed against IndusInd International Holdings Ltd (IIHL) before appellate tribunal NCLAT.

The Committee of Creditors (CoC) of Reliance Capital has informed NCLAT that the resolution plan was completely implemented by IIHL with the transfer of complete payment amounts in terms of the resolution plan.

The CoC sought permission of the National Company Law Appellate Tribunal to withdraw its appeal filed against the NCLT order, in consideration of the completion of the implementation of the resolution plan by IIHL.

While allowing CoC's application for withdrawal, NCLAT noted counsel appearing for the administrator as well as IIHL had no objection towards this.

"In the circumstances, the said application stands allowed. Accordingly, the appeal is disposed of as withdrawn. Pending applications, if any, are also disposed of," said a two-member bench comprising Justice Yogesh Khanna and Ajai Das Mehrotra in its order passed on March 24, 2025.

IIHL had emerged as the successful resolution applicant with the highest bid of Rs 9,650 crore in April 2023 for acquiring the troubled financial services firm under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code (IBC).

However, in terms of the resolution plan and plan approval order, the resolution plan was required to be implemented by IIHL on or before May 27, 2024. This timeline was extended till August 10, 2024.

"During the extended period, steps were taken by IIHL, with cooperation from the Administrator of the Corporate Debtor (RCap) and the CoC towards implementation of the resolution plan and a process note capturing the implementation steps was submitted by IIHL, as agreed upon by the parties and as approved by the CoC," submitted lender's counsel, which was also noted by NCLAT in its order.

Lenders of RCap moved NCLAT last year seeking modification in the order passed by the Mumbai Bench of the National Company Law Tribunal (NCLT), which had, on July 23, 2024, directed IIHL to deposit the equity component of Rs 2,750 crore in the CoC escrow accounts.

They had requested the appellate tribunal to direct IIHL to "allow interest on the Upfront Cash Amount till August 8, 2024" and also " allow interest on debt component of Upfront Cash Amount from August 8, 2024 till Transfer Date which is the date of payment of Upfront Cash Amount" of Rs 9,650 crore.

NCLAT had, on September 13, 2024 issued notice to IIHL in this.

In November 2021, the RBI superseded the Reliance Capital board on governance issues and payment defaults by the Anil Dhirubhai Ambani Group company. The central bank had appointed Nageswara Rao Y as the administrator, who invited bids in February 2022 to take over the company.

IIHL had on March 19 took control of RCAP after completing a three-year resolution process after paying off the debt-ridden firm's lenders.

IIHL has taken over the board of RCap and its key subsidiaries, like Reliance Nippon Life Insurance, Reliance General Insurance, Reliance Securities, and Reliance Asset Reconstruction.