Anil Ambani-led Reliance Infrastructure got relief as the National Company Law Appellate Tribunal (NCLAT), New Delhi, stayed the order initiating corporate insolvency resolution proceedings (CIRP) against the company on July 18.
The next hearing in the matter is scheduled for August 27. In its filing to the stock exchanges, the company stated that the stay follows the earlier interim relief granted by the NCLAT on June 4. At that time, the tribunal had temporarily suspended the May 30 order of the National Company Law Tribunal (NCLT), which had initiated the insolvency process.
What is the issue about? RInfra was accused of Rs 88.68 crore default
On May 30, the NCLT, Mumbai had admitted a petition filed by IDBI Trusteeship Services to initiate CIRP against Reliance Infrastructure. The petition alleged a default of Rs 88.68 crore as of August 2018, along with interest at the rate of 1.25 per cent per month from 30 days after receipt of each invoice.
The case was related to 10 invoices raised between 2017 and 2018 by Dhursar Solar Power Private (DSPPL), which supplied solar energy to Reliance Infrastructure.
As part of its order, the NCLT had also appointed Tehseen Fatima Khatri as the interim resolution professional (IRP) for the company.
Reliance Infra claims full payment made to Dhursar Solar Power
Later, Reliance Infra stated that it had made the full payment of Rs 92.68 crore to Dhursar Solar Power against the claim of tariff, as per the Energy Purchase Agreement with the company.
“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,” Reliance Infra said in a stock exchange filing dated June 2.
The company argued that since the dues had been cleared, there was no ground to initiate insolvency proceedings. Following the NCLT’s order, Reliance Infrastructure moved the NCLAT, challenging both the initiation of the CIRP and the appointment of the interim resolution professional (IRP).
Dispute traces back to April 2022 over unpaid solar dues
The dispute began in April 2022 when IDBI Trusteeship, acting as the security trustee for DSPPL, filed a petition to begin insolvency proceedings over alleged non-payment of dues. The trusteeship firm claimed Reliance Infra failed to pay invoices raised by DSPPL for energy supplied under an agreement.
The NCLAT’s stay order has brought temporary relief for Reliance Infrastructure as the matter now heads for its next hearing in August.