NCLT admits Reliance Infrastructure for insolvency resolution process

NCLT admits insolvency plea against Reliance Infrastructure filed by IDBI Trusteeship, appoints interim resolution professional.

The National Company Law Tribunal (NCLT), Mumbai has admitted insolvency plea against Reliance Infrastructure Ltd. filed by IDBI Trusteeship Services Ltd.

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.