NCLAT Issues Notice to IndusInd Holdings Over Reliance Capital Payment Dispute

The NCLAT issued a notice to IndusInd International Holdings Ltd (IIHL) after lenders of Reliance Capital sought interest for an extended payment period. IIHL has two weeks to respond. The lenders aim to modify a previous order and seek interest related to Resoluiton Plan payments and potential forfeiture of Rs 2,750 crore.

The NCLAT on Friday issued a notice to IndusInd International Holdings Ltd (IIHL) addressing concerns raised by lenders of Reliance Capital over interest payments for an extended period.

A three-member bench chaired by Justice Ashok Bhushan has given IIHL two weeks to respond to the plea.

The petition, filed by the Committee of Creditors (CoC) of Reliance Capital, seeks modifications to a prior order from the National Company Law Tribunal (NCLT) in Mumbai. The NCLT had directed IIHL to deposit Rs 2,750 crore of equity into CoC escrow accounts by July 23. Further requests include the allowance of interest on specific payments related to the Rs 9,660 crore upfront cash amount due and the potential forfeiture of designated account monies upon default.

(With inputs from agencies.)