NCLT Chennai Orders Shareholder, Creditor Meetings For Renault Group Restructuring Scheme

The National Company Law Tribunal (NCLT) at Chennai has allowed a first motion application concerning a proposed restructuring involving three Indian entities of French automobile maker Renault.

The proposal envisages the demerger of Renault Nissan Automotive India Private Limited's powertrain business into Renault India Powertrain Private Limited. It also provides for the amalgamation of Renault Nissan Automotive India Private Limited with Renault India Private Limited.

The tribunal directed meetings of the relevant shareholders and creditors to consider the proposed Composite Scheme of Arrangement.

A bench of Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam allowed the first motion plea.

Under the proposed scheme, the powertrain manufacturing business of Renault Nissan would first be demerged and transferred to Renault India Powertrain on a going concern basis. Thereafter, Renault Nissan would be amalgamated with Renault India Private Limited.

The companies contended that the restructuring is aimed at improving efficiency, enhancing execution, optimizing internal resource allocation, and consolidating financial reporting. The Board of Directors of all three companies approved the scheme on April 28, 2026.

As per the scheme, upon the scheme becoming effective, Renault India Powertrain would issue 15 equity shares of ₹10 each for every 1,000 equity shares held in Renault Nissan. Following the amalgamation, Renault India Private Limited would issue 1,707 equity shares of ₹10 each for every 1,000 equity shares held in Renault Nissan.

The Tribunal noted that all three companies had nil preference shareholders and nil secured creditors, making meetings of those classes unnecessary.

However, the tribunal directed meetings of equity shareholders of all three companies, along with unsecured creditors of Renault Nissan and Renault India Private Limited, to be convened on July 25, 2026 for consideration of the scheme.

The tribunal further issued directions regarding quorum, appointment of a chairperson and scrutinizer, issuance of notices, newspaper publication, and service of notices on statutory authorities.

Accordingly, the Tribunal allowed the application.

For Applicants: Advocate Pawan Jhabakh