RCap administrator moves NCLT seeking Hinduja payment by May 28

The appeal, filed before the tribunal’s Mumbai bench, seeks a correction in the earlier order that stated that payment had to be made within 90 days. The tribunal has listed the appeal for hearing on March 11.

On February 27, the tribunal had approved the resolution plan submitted by IndusInd International Holdings (IIHL), the firm through which the Hinduja Group – the successful applicant for debt-laden firm – had placed its bids for RCap. As per the order, the 90-day period for payment would start after IIHL gets all approvals – including those from the Securities and Exchange Board of India, Reserve Bank of India and the Insurance Regulatory and Development Authority of India – for completion of the resolution process.

However, the administrator wants the 90-day countdown to begin from the judgment date. According to the appeal dated March 2, the correction is being sought for the T-plus 90 days, with T being the approval date from the NCLT.

On March 5, RCap’s committee of creditors (CoC), including Life Insurance Corporation of India (LIC) and Yes Bank, asked Hindujas to implement the resolution plan before the end of this month. This was as per discussions the CoC had with Hindujas. On December 13, 2023, IIHL had committed to implement the resolution plan and make payments to the lenders before March 31. This was later reiterated by IIHL representatives in a CoC meeting held on December 22, 2023.

In June 2023, RCap lenders approved the resolution plan submitted by Mauritius-registered IIHL with a whopping 99.6% of the total votes polled in the latter’s favour.