Insolvency petitions against RCom

Mumbai NCLT bench to hear

The Delhi-based Principal Bench of the National Company Law Tribunal (NCLT) has directed the Mumbai bench to hear insolvency petitions filed by the China Development Bank (CDB)) against Reliance Communication (RCom) and Reliance Telecom together, reports PTI. CDB has initiated proceedings against the ADAG group companies by filing two different petitions, which have been listed before the Bench 1 and Bench 2 of Mumbai. The Principal Bench has now directed the registry of the Mumbai NCLT to put both the petitions before the first bench of the tribunal on the next date of hearing. This follows a common petition by all the parties - Reliance Communications and China Development Bank - before the Principal Bench. Agreeing to it, NCLT President Chief Justice MM Kumar said: "We have heard counsel for the parties and are of the view that in order to facilitate the hearing it would be efficacious if the proceedings in both the petitions are posted before one and the same bench".

The Principal Bench said: "Accordingly, a direction is issued to the registry of the Mumbai bench to put both the petitions before the first bench-NCLT, Mumbai". RCom and its subsidiary are facing insolvency proceedings, filed by lenders such as the China Development Bank and Ericsson India Pvt. Ltd. before the NCLT, for the recovery of dues. RCom along with its subsidiaries owe Rs 1,154 crore to the Swedish network services provider. RCom’s lenders, led by the State Bank of India (SBI), had invoked the strategic debt restructuring (SDR) against the firm in June, allowing them to convert debt into equity.