Informist, Wednesday, Jun. 4, 2025

--NCLAT stays IBC proceedings against Reliance Infrastructure till Jul 18

--CONTEXT: Suspended RInfra director in NCLAT against IBC admission in NCLT

--NCLAT stays IBC proceedings against RInfra in NCLT by IDBI Trusteeship

By Surya Tripathi

NEW DELHI – The National Company Law Appellate Tribunal on Wednesday stayed the corporate insolvency resolution process against Reliance Infrastructure Ltd. till Jul. 18, the next date of hearing. The appellate tribunal was hearing an appeal by Rajesh Kumar Dhingra, the suspended director of Reliance Infrastructure, against the National Company Law Tribunal Mumbai bench's order to admit IDBI Trusteeship Services Ltd.'s insolvency petition against Reliance Infrastructure.

Reliance Infrastructure had argued that it had paid the entire amount to IDBI Trusteeship and the insolvency proceedings should not have been started against them. On this, the counsel for IDBI Trusteeship said that "reconciliations" need to be done of its account for checking if all the amount is paid and some time is required for the same. Giving IDBI Trusteeship time for "reconciliations" of its accounts, the appellate tribunal stayed the Mumbai bench's order till the next date of hearing.

At 1345 IST, the shares of Reliance Infrastructure Ltd. were trading 8% higher at INR 369.40 on the National Stock Exchange.

Reliance Infrastructure had argued that it had paid the entire amount to IDBI Trusteeship and the insolvency proceedings should not have been started against them. On this, the counsel for IDBI Trusteeship said that "reconciliations" needs to be done of its account and some time is required for the same. Giving IDBI Trusteeship time for "reconciliations" of its accounts, the appellate tribunal stayed the Mumbai bench's order till the next date of hearing.

"The company has made full payment of INR 926.8 million to Dhursar Solar Power Pvt. Ltd., towards claim of tariff as per the energy purchase agreement with the company," Reliance Infrastructure had said in an exchange filing. The Mumbai tribunal's order has become "infructuous" as legally advised, as full payment has already been made, the company had added.

Last week, the Mumbai tribunal had appointed Tehseen Fatima Khatri as the interim resolution professional of Reliance Infrastructure to carry out the functions as per the Insolvency and Bankruptcy Code, 2016. "In view of the above discussions, we come to a definite conclusion that the OC (operational creditor) has become successful in establishing operational debt due and payable against the CD (corporate debtor) and that the CD is in default," said the tribunal. Further, the Mumbai tribunal had rejected Reliance Infrastructure's request to stay its order.

In 2011, Reliance Infrastructure and Dhursar Solar Power had executed an energy purchase agreement, under which the former had agreed to purchase all the solar energy from the solar power plant of the latter. Later, IDBI Trusteeship entered into a direct agreement in 2012 with Reliance Infrastructure and Dhursar Solar Power. As per the terms of this agreement, all the claims of Dhursar Solar Power were assigned to IDBI Trusteeship, which served as Dhursar's security trustee and the energy purchase agreement was amended accordingly.

Thereafter, Reliance Infrastructure defaulted on the payment of 10 invoices issued by Dhursar Solar Power under the energy purchase agreement. These invoices were issued between 2017 and 2018, and IDBI Trusteeship, as the security trustee of Dhursar Solar Power, sought payments against the invoices from the corporate debtor. On non-payment of dues, IDBI Trusteeship moved the Mumbai tribunal to start insolvency proceedings against Reliance Infrastructure. End

Edited by Deepshikha Bhardwaj

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.