Reliance Communications (RCom) is a currently going through insolvency proceedings. HSBC Daisy Investments (Mauritius) and others have filed the contempt petition against Reliance Infratel. In May this year, the Mumbai bench of the National Company Law Tribunal (NCLT) started the corporate insolvency resolution process of RCom, which has a total bank debt of over Rs. 50,000 crore.A...
Reliance Communications (RCom) is a currently going through insolvency proceedings. HSBC Daisy Investments (Mauritius) and others have filed the contempt petition against Reliance Infratel. In May this year, the Mumbai bench of the National Company Law Tribunal (NCLT) started the corporate insolvency resolution process of RCom, which has a total bank debt of over Rs. 50,000 crore.
A contempt petition was filed by HSBC Daisy Investments (Mauritius) against Reliance Infratel. HSBC Daisy had moved the National Company Law Appellate Tribunal (NCLAT) over alleged default of payment of Rs. 230 crore by Reliance Infratel and stated that the company has not fulfilled an undertaking given by it. As per the consent terms of the agreement among Reliance Infratel, HSBC Daisy and others, the Anil Ambani-owned firm was to pay the amount in the following six months. After the six-month period ended, HSBC Daisy and nine other minority shareholders holding 4.26 per cent stake in Reliance Infratel filed the contempt plea.
A two-member bench, which was headed by NCLAT Chairman Justice S J Mukhopadhaya, said it will decide whether the contempt petition filed by HSBC Daisy Investments (Mauritius) and others should be admitted as RCom is a now going through insolvency proceedings.
The counsel appearing for resolution professional said that as RCom was going through insolvency proceedings and was under the moratorium period under the IBC, it cannot pay money.