The National Company Law Tribunal (NCLT) is due to issue the final order in the Reliance Capital insolvency case at 4:30 p.m. today. NCLT reserves an order with reference to an insolvency claim against Reliance Capital Ltd under section 227 of the Insolvency and Bankruptcy Code (IBC).
Reliance Capital’s attorney said the company supports the insolvency claim.
Last week, the Reserve Bank of India (RBI) filed a plea in NCLT’s Mumbai court to initiate insolvency proceedings against Reliance Capital Ltd (RCL).
The central bank replaced on November 29 the board of directors of Reliance Capital Ltd, promoted by the Reliance group of Anil Ambani, due to defaults.
The board was replaced due to RCL’s breaches of its various payment obligations to its creditors and serious governance issues that the board has not been able to respond to effectively, the RBI said. .
“… The Reserve Bank replaced the board of directors of M / s Reliance Capital Ltd (RCL) due to RCL’s failure to meet various payment obligations to its creditors and serious governance issues that the board could not deal effectively, ”the central bank said.
She also appointed Nageswar Rao Y (ex-executive director, Bank of Maharashtra) administrator of the NBFC.
In a statement, the company praised the RBI’s decision to settle its debt under the insolvency and bankruptcy code. “The company will cooperate fully with the administrator appointed by the RBI for the speedy settlement of its debt in the best interests of all stakeholders,” he said.
(Edited by : Anshul)
First publication: STI