NCLT admits insolvency plea against Reliance Broadcast Network
The plea has been filed by IDBI Trusteeship Services on behalf of L&T Investment Management Limited over the non-clearance of debt worth Rs Rs 174 crore
National Company Law Tribunal (NCLT) has admitted the insolvency plea by IDBI Trusteeship Services Limited against Reliance Broadcast Network, which runs BIG FM. Rohit Ramesh Mehra has been appointed by NCLT's Mumbai bench as the insolvency resolution professional.
According to the plea by IDBI Trusteeship Services on behalf of L&T Investment Management Limited, the radio broadcast company has failed to clear a debt of Rs 174 crore.
L&T Investment Management Limited has subscribed to Non-Convertible Debentures (NCDs) worth Rs 200 crore issued by the network in three tranches.
“We are of the considered view that since the Registered office of the Corporate Debtor is in Mumbai this Tribunal has territorial jurisdiction over the present subject matter by virtue of Section 60(1) of the Code,” said the bench.
Prior to the petition, the counsel for the network argued that the Mumbai bench of NCLT has no jurisdiction in the matter since both parties have given nonexclusive jurisdiction to New Delhi Tribunals in case of disputes. The counsel also argued that there is no crystallisation of the debt and the petitioner (IDBI Trusteeship) has not provided any particulars of the claim of Rs 174 crore.
In a retort to this, the counsel to IDBI Trusteeship said that the debenture holder issued a notice on July 14, 2021 to Reliance Capital to clear the dues by Reliance Broadcast Network.
