NCLT Chennai Allows Stakeholder Meetings On Renault-Nissan's Demerger Of Powertrain Business
The National Company Law Tribunal (NCLT) at Chennai has allowed Renault Nissan Automotive India Private Limited and Renault India Powertrain Private Limited to hold shareholder and creditor meetings for a proposed scheme to demerge Renault Nissan's Powertrain Manufacturing Business into Renault India Powertrain Private Limited.
A coram of Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam passed the order on August 11, 2026.
Under the scheme, Renault-Nissan's Powertrain Manufacturing Business will be transferred to Renault India Powertrain as a going concern.
The business covers assets, activities, people, liabilities, and contracts relating to the manufacture of internal combustion engine and hybrid powertrains, including engines and gearboxes.
According to the scheme, the demerger is intended to enable the Powertrain Manufacturing Business and Renault Nissan's Remaining Business to focus more effectively on their distinct industrial and operational models. It also provides for dedicated management and a clearer operating model, while allowing the businesses to determine capital expenditure and operational priorities independently.
Once the scheme takes effect, Renault India Powertrain Private Limited will issue 15 fully paid-up equity shares of ₹10 each for every 1,000 fully paid-up equity shares of ₹10 each held in Renault Nissan.
The order records that Renault Nissan had two equity shareholders as of April 28, 2026, and 777 unsecured creditors as of February 28, 2026. Renault India Powertrain had two equity shareholders as of April 28, 2026, and no secured or unsecured creditors.
The tribunal has directed the company's equity shareholders to meet on September 19, 2026, at 10.30 am.
Its unsecured creditors will meet at noon, while Renault India Powertrain's equity shareholders will meet at 2.30 pm the same day.
The meetings may be held at Plot No. 1, SIPCOT Industrial Park, Oragadam, Tamil Nadu, through video conferencing or, if that is not convenient, at another suitable place with prior approval from the tribunal.
The tribunal fixed the quorum at two for each equity shareholder meeting and 30 for the unsecured creditors' meeting. It appointed a Chairperson and a Scrutinizer and issued directions on notices, proxies, voting, advertisements, and reporting of the meeting results.
The application was accordingly allowed.
For Applicants: Advocate Pawan Jhabakh