New Delhi: The National Company Law Appellate Tribunal (NCLAT) has dismissed a batch of appeals filed against the National Company Law Tribunal (NCLT) order approving the resolution plan of Sapphire Media for Reliance Broadcast Network Ltd (RBNL), which operates the popular FM radio brand Big 92.7 FM.
The appeals were filed by unsuccessful resolution applicants – Abhijit Realtors & Infraventure and Creative Channel Advertising & Marketing – who challenged the NCLT’s decision to approve Sapphire Media’s bid. The petitioners had alleged irregularities in the resolution process conducted by the resolution professional of RBNL.
However, the NCLAT, in its order, upheld the NCLT’s findings and dismissed the appeals. The tribunal stated that the challenge mechanism and negotiations conducted by the resolution professional were in accordance with the relevant regulations and procedures.
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Furthermore, the NCLAT found no irregularities in the evaluation of Sapphire Media’s eligibility and concluded that there were no tenable grounds to interfere with the NCLT’s order approving the resolution plan.
Background:
The Corporate Insolvency Resolution Process (CIRP) against RBNL was initiated by the NCLT in February 2023 on an application filed by IDBI Trusteeship Services, a financial creditor of the company.
During the CIRP, six resolution plans were received, with Sapphire Media emerging as the successful bidder with a bid of Rs 261 crore. This followed a competitive bidding process that included multiple rounds of challenges and negotiations.