23 July 2019: National Company Law Appellate Tribunal on Tuesday dismissed a contempt petition filed against Reliance Group Chairman Anil Ambani and other officials, alleging default by Reliance Infratel Ltd.
“We have found that no case has been made out for contempt,” said a two-member NCLAT bench headed by Chairman Justice SJ Mukhopadhaya.
On July 3, NCLAT reserved its order saying that it will decide whether the the contempt petition filed by HSBC Daisy Investments (Mauritius) and others should be admitted as Reliance Communications Ltd. is going through insolvency proceedings.
Reliance Infratel, is a subsidiary of RCom, and is presently under corporate insolvency resolution process. HSBC Daisy had moved NCLAT over alleged default of payment of Rs 230 crore by Reliance Infratel.
According to the consent terms of the agreement among Reliance Infratel, HSBC Daisy and others, recorded by the NCLAT in its order dated June 26, 2018, the Anil Ambani-owned firm had 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 percent stake in Reliance Infratel filed the contempt plea.
The counsel appearing for resolution professional said that as RCom was going through insolvency proceedings and was under the moratorium period under the Insolvency and Bankruptcy Code, it cannot pay the money.
In May this year, the Mumbai bench of the National Company Law Tribunal started the corporate insolvency resolution process of RCom, which has a total bank debt of over Rs 50,000 crore.