The Mumbai bench of the National Company Law Tribunal has approved the ₹9,650 crore resolution plan submitted by Hinduja Group for the acquisition of debt-laden Reliance Capital Ltd., one of the largest financial services insolvencies under the Insolvency and Bankruptcy Code.
The Committee of Creditors had voted 94.26% in favour of the Hinduja plan after it was upwardly revised from ₹8,110 crore to ₹9,650 crore following multiple rounds of negotiations facilitated by the NCLT.
The NCLT bench of Judicial Member Reeta Kohli and Technical Member B. Nageswar Rao, in its order, noted:
"The resolution plan meets the requirements of Section 30(2) of the IBC. The plan provides for payment of 100% to operational creditors and approximately 37% recovery to financial creditors — which, in the context of the complexity of this resolution, represents a commercially reasonable outcome."
Reliance Capital had been admitted into insolvency in November 2021 after defaulting on payments to its creditors. The insolvency resolution process saw intense litigation including challenges by minority shareholders and dissenting creditors.
The Committee of Creditors had voted 94.26% in favour of the Hinduja plan after it was upwardly revised from ₹8,110 crore to ₹9,650 crore following multiple rounds of negotiations facilitated by the NCLT.
The NCLT bench of Judicial Member Reeta Kohli and Technical Member B. Nageswar Rao, in its order, noted:
"The resolution plan meets the requirements of Section 30(2) of the IBC. The plan provides for payment of 100% to operational creditors and approximately 37% recovery to financial creditors — which, in the context of the complexity of this resolution, represents a commercially reasonable outcome."
Reliance Capital had been admitted into insolvency in November 2021 after defaulting on payments to its creditors. The insolvency resolution process saw intense litigation including challenges by minority shareholders and dissenting creditors.