Relief for Reliance Infra as NCLAT puts bankruptcy proceedings on hold

Mint

3 days ago

In a relief to Reliance Infrastructure, the National Company Law Appellate Tribunal (NCLAT) on Wednesday stayed insolvency proceedings against the company that were initiated by IDBI Trusteeship Services Ltd over an alleged default of ₹ 88 crore.
The NCLAT bench, comprising Justice Yogesh Khanna (Judicial Member) and Indevar Pandey (Technical Member), paused the order of the Mumbai bench of the National Company Law Tribunal (NCLT), which had admitted the insolvency plea against the company on 30 May 2025, following a petition by IDBI Trusteeship.
The Anil Ambani-led Reliance Infrastructure also announced the NCLAT order in its regulatory filing: "In the appeal filed, the NCLAT today has suspended the Order dated May 30, 2025 passed by the National Company Law Tribunal, Mumbai in case no. C.P. (IB)/624(MB)2022, admitting the company into Corporate Insolvency Resolution Process," the company stated.
The case started back in April 2022, when IDBI Trusteeship filed a petition for insolvency proceedings, claiming Reliance Infrastructure had defaulted on ₹ 88.68 crore as of 28 August 2018, plus interest.
The issue was related to 10 invoices raised by Dhursar Solar Power Private Ltd (DSPPL) for supplying solar energy. IDBI Trusteeship, as DSPPL's security trustee, sought payments from Reliance Infrastructure.
In its 30 May order, the NCLT noted that both parties had tried to settle the matter. But it found that IDBI Trusteeship had proven the debt was due and that Reliance Infrastructure was in default.
The NCLT appointed Tehseen Fatima Khatri as interim resolution professional (IRP) to oversee the company. It also rejected Reliance Infrastructure's request to pause the insolvency process or to stop the IRP from taking charge.
'The IBC does not have any rule to stay an order once the CIRP is started,' the tribunal noted.
Reliance Infrastructure later announced in a regulatory filing that it had fully paid ₹ 92.68 crore to Dhursar Solar Power Private Ltd as per the energy agreement. The company argued that the NCLT order was no longer valid since it had already cleared its dues.
The company said it would challenge the NCLT order at the NCLAT, which ultimately stayed the insolvency order.
Earlier, Reliance Infrastructure said it had reduced its standalone net debt to zero, cutting about ₹ 3,300 crore in FY25. The firm, which works in power, metro, roads and defence sectors, said this move strengthens its finances and positions it for future growth.