Bankruptcy court admits insolvency resolution plea against Reliance Infrastructure

Time of India

02-06-2025

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The Mumbai bench of the National Company Law Tribunal (NCLT) has admitted Anil Ambani-promoted Reliance Infrastructure Ltd. under the corporate insolvency resolution process (CIRP) and has appointed Tehseen Fatima Khatri as the interim resolution professional (IRP).The development followed an application filed by IDBI Trusteeship Services Ltd on behalf of the operational creditors. The trustee company had approached the tribunal after the company defaulted on its dues of more than Rs 88 crore.In response to ET's queries, Reliance Infrastructure said there is no impact or bearing of the NCLT order on the company or any of its subsidiaries.'The company has made full payment of Rs 92.68 crore to Dhursar Solar Power Private Limited, towards the claim of tariff as per the energy purchase agreement with the company. Accordingly, the company preferred an appeal before the Hon'ble NCLAT and will seek withdrawal of the order dated May 30, 2025, passed by NCLT Mumbai in case no. C.P. (IB) 642/MB/2022, for corporate insolvency resolution process and appointment of the interim resolution professional,' a Reliance Infrastructure spokesperson said, adding that the NCLT order has become infructuous, as legally advised, upon full payment having already been made.In its order of May 30, the division bench of judicial member KR Saji Kumar and technical member Sanjiv Dutt said, 'We come to a definite conclusion that the operational creditor (IDBI Trusteeship) has become successful in establishing operational debt due and payable against the CD (corporate debtor) and that the CD (Reliance Infrastructure) is in default.'The genesis of the dispute lies in the energy purchase agreement (EPA) of 2011, between Reliance Infrastructure and Dhursar Solar Power Pvt Ltd (DSPPL). Under the agreement, the Anil Ambani-promoted company agreed to purchase all the solar energy generated from the solar power plant of DSPPL.Subsequently, in 2012, IDBI Trusteeship Services entered into a direct agreement (DA) with Reliance Infrastructure and DSPPL. As per the terms of the agreement, all the claims of the DSPPL were assigned to the IDBI Trusteeship.As per the agreement, DSPPL supplied solar energy to Reliance Infrastructure and raised 10 invoices for this during 2017 and 2018.Senior counsel Gaurav Joshi and Animesh Bisht of Cyril Amarchand Mangaldas, appearing for the IDBI Trusteeship, submitted that on account of Reliance Infrastructure's failure in making payments to the trustee company despite repeated requests, the trustee issued a demand notice in April 2022 under the Insolvency and Bankruptcy Code, seeking payment of more than Rs 88 crore along with interest.Countering this, senior advocate Prateek Seksaria, appearing for Reliance Infrastructure, argued that the main application filed by the creditor was time-barred by limitation since the last invoice was issued in September 2018 and was due and payable in November 2018, while the main application was filed in April 2022.Reliance Infrastructure also argued that the main application against the company was not maintainable on account of a pre-existing dispute with DSPPL.Besides, on the date of admission of the company, Reliance Infrastructure, through senior counsel Ashish S. Kamat, requested to stay the order of admission of CIRP and also sought to direct the resolution professional not to take charge of the company.The tribunal, however, rejected the request with the observation that it did not have any power to stay the CIRP against the company after passing an admission order.