NCLT stays Reliance-Infratel asset sale till further orders

The Mumbai bench of the National Company Law Tribunal (NCLT) on Monday stayed the sale of Reliance Infratel’s assets until further orders. It also dismissed petitions filed by the company that sought to put a stop to the tribunal’s hearings on the proposed sale of its assets to a third party, in lieu of debt resolution.

Reliance Infratel is a subsidiary of Anil Ambani-led Reliance Communications (RComm). The company plans to sell its assets, through a binding agreement, to Reliance-Jio Infocomm Ltd (RJio) according to a debt resolution plan approved by lenders in December 2017.

Meanwhile, RComm spokesperson said: “We intend to file an appeal immediately before the National Company Law Appellate Tribunal

(NCLAT) to vacate the stay, to protect the interests of our secured lenders. It is to be noted that the stay granted by NCLT today relates only to RComm's tower andfiberassets, and does not apply to spectrum, MCNs, real estate.”

The NCLT Mumbai bench heard the petition filed by overseas investors of Reliance Infratel. The lead petitioner in the case, HSBC Daisy Investments (Mauritius), along with the other shareholders, had alleged oppression of minority shareholders and mis- management under Section 397 and 398 of the Companies Act, 1956. Section 397 and 398 state that a complainant can file an application if they feel “that the affairs of the company are being conducted in a manner prejudicial to public interest or in a manner oppressive to any member or members”. Further, Reliance Infratel has been given three weeks to file a response, upon which HSBC Daisy and others can file a rejoinder. The contempt petition scheduled to be heard on March 13, 2018, will now be heard on April 06, 2018.

The lead petitioner in the case, HSBC Daisy Investments (Mauritius), along with other shareholders, had alleged oppression of minority shareholders