Mumbai: The National Company Law Tribunal (NCLT) Thursday allowed Reliance Communications (RCom) to exclude the 357 days spent in litigation and admitted it for insolvency. With this, RCom, which owes over Rs 50,000 crore to banks, has become the first Anil Ambani group company to be officially declared bankrupt after the NCLT Thursday superseded its board and appointed a new resolution professional to run it and also allow the SBI-led consortium of 31 banks to form a committee of creditors.
At the last hearing, Rcom, through the existing resolution professional, had sought 357 days (from May 30, 2018 to April 30, 2019) exclusion in the insolvency process citing the stays it had on the process by the appellate tribunal and the Supreme Court. The RP sought the exclusion from May 30, 2018 to April 30, 2019 as the initial insolvency proceedings was stayed by the National Company Law Appellate Tribunal (NCLAT) and later by the apex court. Under the Insolvency and Bankruptcy Code, 2016, the insolvency process has to be completed within 270 days.
