NCLT URGES SWIFT APPROVALS FOR RELIANCE CAPITAL ACQUISITION

Why in the news?

NCLT has directed RBI and DPIIT to expedite approvals, crucial for completing Hinduja’s ₹9,861 crore acquisition of Reliance Capital, amid concerns over implementation delays.

source:medium

About NCLT Orders Expedited Approvals:

  • The National Company Law Tribunal (NCLT) instructed the Reserve Bank of India (RBI) and the Department for Promotion of Industry and Internal Trade (DPIIT) to expedite necessary approvals.
  • These approvals are crucial for Hinduja-owned IndusInd International Holdings Ltd (IHL) to complete the acquisition of the insolvent Reliance Capital.

Hindujas Seek Extension for Implementation:

  • The Hindujas filed a petition seeking an extension of the timeline set by the tribunal in its July 23 order for implementing the ₹9,861 crore resolution plan for Reliance Capital.
  • The tribunal noted that certain approvals from SEBI and IRDAI had lapsed and required renewal.
Understanding the National Company Law Tribunal:

  • The National Company Law Tribunal (NCLT) is a quasi-judicial body in India.
  • Established: under the Companies Act, 2013, it adjudicates issues relating to Indian companies.
  • NCLT has jurisdiction over matters related to company law, including mergers, demergers, corporate disputes, and insolvency proceedings.

Functions and Powers:

  • The NCLT handles cases related to the Insolvency and Bankruptcy Code (IBC) of 2016.
  • It has the authority to initiate corporate insolvency resolution processes and adjudicate on creditor claims.
  • The tribunal also deals with cases concerning the oppression and mismanagement of companies, winding up of companies, and other matters under the Companies Act.

Structure:

  • NCLT operates through benches located across various cities in India.
  • Each bench is presided over by a judicial member and a technical member.
  • Appeals against NCLT orders can be made to the National Company Law Appellate Tribunal (NCLAT), and further to the Supreme Court of India.

Associated Article:

https://universalinstitutions.com/nclt-rejects-jals-claims-orders-insolvency-proceedings-initiation/