Reliance Capital supports RBI application of referring RCAP to NCLT

Reliance Capital Limited (RCAP) has welcomed the Reserve Bank of India’s (RBI) application of referring the company to the National Company Law Tribunal (NCLT) under Section 227 for a fast-track resolution.

“The company looks forward to expeditious resolution of its debt and continuation as a well-capitalised going concern through the IBC process, in the overall interests of all its stakeholders, including lenders, customers, employees and shareholders,” a company statement said. 

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The bankruptcy court is expected to pronounce its order today on a plea filed by the RBI to initiate Corporate Insolvency Resolution Process (CIRP) under the Insolvency and bankruptcy Code, 2016.  

On 2 December, Reliance Capital had informed to the exchanges about RBI filing applications for initiation CIRP against the company under “Section 227 read with clause (zk) of sub-section (2) of Section 239 of the Insolvency and Bankruptcy Code, 2016 read with Rules 5 and 6 of the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudication Authority) Rules, 2019 (“FSP Insolvency Rules”).”. 

An interim moratorium is in effect against Reliance Capital which stops:  

(a) all pending suits or proceedings against the Reliance Capital including execution of any judgement, decree or order in any court of law, tribunal, arbitration panel or other authority  

(b) transferring, encumbering, alienating or disposing off any of its assets or any legal right or beneficial interest by the company  

(c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002);  

(d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor

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