NCLT allows RCap administrator plea seeking correction in 90-day period

It will lead to a faster closure of the resolution process, which started in November 2021. The Hinduja Group, the successful applicant for the debt-laden firm, has to implement the resolution plan by May 27.

The tribunal’s Mumbai bench which heard the case on Wednesday said the 90-day period for the implementation of the plan will now start from the date of its earlier order. In its order on February 27, the tribunal had said the 90-day period would start after the group gets all regulatory approvals.

According to that order, the 90-day period for payment would start from the day IndusInd International Holdings (IIHL), the firm through which the Hinduja Group had placed its bids for RCap, gets all the approvals from Sebi, the Reserve Bank of India and the Insurance Regulatory and Development Authority of India for completion of the resolution process.

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

On March 5, RCap’s committee of creditors asked the Hinduja Group to implement the resolution plan before the end of this month. This was as per discussions the CoC earlier had with the Hindujas.

On December 13, 2023, IIHL had committed to implement the resolution plan and make payments to the lenders before March 31, which was later reiterated by its representatives in a CoC meeting held on December 22, 2023.

RCap’s CoC comprises LIC, EmployeesProvident Fund Organisation, IndusInd Bank, Deutsche Bank and various financial institutions, including IDBI Trusteeship Services and Broadpeak Investment Advisors.