NCLAT Issues Notice to IIHL Over Reliance Capital's Loan Dispute

The National Company Law Appellate Tribunal (NCLAT) issued a notice to IndusInd International Holdings Ltd (IIHL) in response to a plea from lenders of Reliance Capital. The lenders demand interest on payments and forfeiture of Rs 2,750 crore if IIHL defaults. The case stems from an extended upfront payment deadline approved by NCLT.

The National Company Law Appellate Tribunal (NCLAT) on Friday issued a notice to IndusInd International Holdings Ltd (IIHL) following a plea by Reliance Capital's lenders. The lenders seek interest payments and potential forfeiture of Rs 2,750 crore in the event of default by IIHL. The case is linked to an extended deadline for the upfront payment approved by NCLT-Mumbai.

A three-member NCLAT bench, led by Chairperson Justice Ashok Bhushan, instructed IIHL to respond within two weeks. The next hearing is set for September 30.

Lenders are contesting a National Company Law Tribunal (NCLT) Mumbai order that extended the period for implementing IIHL's Rs 9,861-crore resolution plan for debt-ridden Reliance Capital until August 8, 2024. The lenders argue that the modification allows IIHL more time without adequately compensating them, causing significant financial strain.

(With inputs from agencies.)