NCLT admits Reliance Infrastructure for insolvency resolution process

Photo: https://archive.nclt.gov.in/

The National Company Law Tribunal (NCLT), Mumbai has admitted insolvency plea against Reliance Infrastructure Ltd. filed by IDBI Trusteeship Services Ltd. Meanwhile, Reliance Infrastructure said it has made the payment and preferred an appeal before National Company Law Appellate Tribunal.

In April 2022, IDBI Trusteeship had filed a petition for initiating corporate insolvency resolution process (CIRP) against Reliance Infrastructure, under section 9 of the Insolvency and Bankruptcy Code, alleging a default of ₹88.68 crore as on August 28, 2018 as well as interest at 1.25% a month from 30 days of the date of receipt of each invoice until the payment date.

It was based on default in the payment of 10 invoices issued between 2017 and 2018 by Dhursar Solar Power Private Ltd. (DSPPL) for supplying solar energy to Reliance Infrastructure as per the energy purchase agreement in 2012. IDBI Trusteeship, being the security trustee of DSPPL, sought payments against the invoices from Reliance Infrastructure. 

In its order on May 30, NCLT said it was aware of the attempts of both the parties to amicably settle the matter.

“We provided sufficient opportunities for the same but the efforts did not yield any result and also noted that the pre-mediation process between the parties has not become successful,” it added.

The NCLT said it has come to a definite conclusion that IDBI Trusteeship has become successful in establishing operational debt due and payable against Reliance Infrastructure and that the company is in default.

It also appointed Tehseen Fatima Khatri as the interim resolution professional (IRP) of the company.

The NCLT also declined the Reliance Infrastructure lawyer’s request to stay the order of admission of CIRP and also to direct the IRP not to take charge of the company.

“We find that there is no provision in the IBC to stay an order of CIRP initiated in respect of the Corporate Debtor (CD). This Adjudicating Authority also has no power to direct an Interim Insolvency Professional appointed, not to take charge of its CD once CIRP is ordered,” it added.

In a stock exchange announcement, Reliance Infrastructure said it has made full payment of ₹92.68 crore to Dhursar Solar Power Private Limited, towards claim of tariff as per the Energy Purchase Agreement with the Company.

The company said it has moved an appeal before National Company Law Appellate Tribunal (NCLAT) seeking withdrawal of NCLT order directing insolvency resolution process and appointment of interim resolution professional.

The NCLT Order has become infructuous as legally advised, upon full payment having already been made, Reliance Infrastructure said.