NCLAT Stays Insolvency Proceedings Against Reliance Infrastructure

Reliance Infrastructure Ltd on Friday said appellate tribunal National Company Law Appellate Tribunal has stayed the insolvency proceedings against the company following a repayment of Rs 92.68 crore towards tariff as per an energy purchase agreement.

Reliance Infrastructure in its latest regulatory filing said that the NCLAT has stayed an National Company Law Tribunal order over an appeal filed by it.

The Mumbai bench of the National Company Law Tribunal on May 30 this year directed initiation the corporate insolvency resolution process and appointment of an interim resolution professional against Reliance Infrastructure.

The NCLT order came after IDBI Trusteeship in April 2022 had filed a petition alleging a default of Rs 88.68 crore plus interest as of August 28, 2018.

In a regulatory filing on June 2 this year, Reliance Infrastructure said the NCLT order has become infructuous 'upon full payment having already been made'.

On June 4, NCLAT had suspended the NCLT order while hearing the company's appeal which said it has made the full payment of Rs 92.68 crore to Dhursar Solar Power Pvt Ltd.

"The company has made full payment of Rs 92.68 crore to Dhursar Solar Power Private Limited, towards claim of tariff as per the Energy Purchase Agreement with the company," Reliance Infra had said in its June 2 statement.

IDBI Trusteeship in its petition had alleged payment defaults on 10 invoices raised between 2017 and 2018 by DSPPL for supplying solar energy to Reliance Infrastructure.

The payments were sought by IDBI Trusteeship, the security trustee of IDBI.