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The National Company Law Appellate Tribunal (NCLAT) has rejected Reliance Realty's appeal challenging the liquidation of Independent-TV, reiterating that the process must be completed in the shortest possible time. The tribunal confirmed the earlier order of the National Company Law Tribunal (NCLT), emphasizing that Reliance Realty cannot obstruct the liquidator's access to leased premises at Dhirubhai Ambani Knowledge City. Independent?TV, which had delayed rental and service payments after 2018, had entered insolvency, and the assets were sold to Shree Sai Baba Ship Breaking Company. The ruling ensures timely resolution of insolvency proceedings.
The NCLAT recently dismissed an appeal by Reliance Realty, which had sought to intervene in the liquidation of Independent-TV, stating that the process must continue without disruption. The tribunal emphasized that the liquidation should be completed in the shortest possible time and that Reliance Realty could not delay or derail the proceedings, especially since it had not raised concerns about the assets earlier. Advertisement
Reliance Realty had leased parts of the Dhirubhai?Ambani Knowledge City (DAKC) premises to Independent-TV for its direct to home (DTH) operations and storage from November 2017. Payments including rent, electricity, and maintenance charges were initially made but became irregular after October 2018, leading to dues accumulating over several years.
In February?2020, insolvency proceedings were initiated against Independent?TV under the Insolvency and Bankruptcy Code, and the National Company Law Tribunal appointed a resolution professional to manage the process. No resolution plan was received, and the NCLT directed liquidation from March?2023. During the process, Reliance?Realty refused inspection of the premises by prospective bidders and demanded repayment of dues spanning five years, complicating the liquidation efforts.
An auction was successfully conducted, with Shree Sai Baba Ship Breaking Company emerging as the successful auction purchaser of approximately 1,874 units of Independent-TV's assets, with the sale certificate issued in December 2024. Reliance-Realty then filed for recovery of rental and electricity dues and objected to the removal of assets from leased premises, claiming some assets belonged to Reliance Communications.
The NCLAT clarified that the liquidator had already verified the assets and that they were under Independent-TV's control. Reliance Realty had not raised objections during the asset inspection or liquidation until after the auction, weakening its claim. The tribunal also noted that Reliance?Realty was not a party to the share purchase agreement through which Independent?TV acquired the DTH business, further limiting its standing. The ruling reaffirmed the NCLT's order, ensuring no further delay in the liquidation process.
The decision signals that in insolvency and liquidation proceedings, parties must act promptly to assert claims, and delayed objections or attempts to block access cannot override the resolution process. The tribunal's order ensures that auctions and asset transfers under liquidation proceed smoothly and sets a precedent for managing disputes over leased premises and asset ownership in insolvency cases.
Source: PTI
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