NCLT Mumbai Approves Sagacious Capital's Rs 110 Crore Plan To Revive Reliance Innoventures

The National Company Law Tribunal (NCLT) at Mumbai has approved a Rs. 110.10 crore resolution plan submitted by Sagacious Capital Pvt Ltd for the revival of debt-ridden Reliance Innoventures Pvt Ltd. The tribunal held that once a plan satisfies the requirements of the Insolvency and Bankruptcy Code, the tribunal cannot interfere with the commercial decisions of lenders. A bench comprising Judicial Member Mohan Prasad Tiwari and Technical Member Charanjeet Singh Gulati observed that the resolution plan complied with statutory requirements under Section 30(2) of the IBC and the relevant CIRP Regulations. “Since the Resolution Plan under consideration satisfies the requirements of the Insolvency and Bankruptcy Code, 2016 and the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the same deserves approval.”, the tribunal noted. Reliance Innoventures was admitted into CIRP on June 15, 2023, on a petition filed by JC Flowers Asset Reconstruction Pvt Ltd. The debtor, incorporated in December 2005, is engaged in the generation of electricity and was part of the Anil Ambani Group prior to insolvency. Following admission, a public announcement inviting claims was issued on June 17, 2023, and the Committee of Creditors (CoC) was constituted in July 2023. After a competitive process involving multiple prospective resolution applicants, the CoC unanimously approved the resolution plan submitted by Sagacious Capital on July 13, 2024. A letter of intent was issued in July 2024, which was accepted along with submission of the performance bank guarantee. Under the approved plan, the entire existing share capital of Reliance Innoventures stands extinguished, and fresh equity will be issued to Sagacious Capital, resulting in a complete change in ownership and control. The plan also provides for full payment of CIRP costs in priority and distribution to financial and operational creditors in accordance with the Code. Several stakeholders objected to the plan, raising concerns over valuation and distribution, undervaluation of assets, inadequate payouts to creditors, and extinguishment of existing share capital without consideration. Rejecting these objections, the tribunal relied on settled precedents and held that it cannot sit in appeal over the commercial wisdom of the Committee of Creditors once the resolution plan complies with the law. It said that reassessment of valuation or redistribution of proceeds is outside its jurisdiction, and that no material irregularity or violation of Sections 30(2) or 29A of the Code was shown to justify interference. The tribunal accordingly directed the resolution professional to hand over all records and assets to the successful resolution applicant to ensure timely implementation of the revival plan. Case Title: JC Flowers Asset Reconstruction Pvt Ltd vs Reliance Innoventures Pvt Ltd Case Citation: 2026 LLBiz NCLT (MUM) 27 Case Number: I.A. 62/2024 in C.P. NO. 1154(IB)/MB/2020 For Applicant: Senior Advocate Gaurav Joshi with Advocates Jyoti A Singh, Sakil Ansari, Nishi Agarwal i/b AJA Legal (PH)For SRA: Advocates Nausher Kohli, Ankit Pitti a/b S & T Legal Click Here To Read/download Order

NCLT Mumbai Approves Sagacious Capital's Rs 110 Crore Plan To Revive Reliance Innoventures

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NCLT Mumbai Approves Sagacious Capital's Rs 110 Crore Plan To Revive Reliance Innoventures

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