NCLAT halts insolvency proceedings against Reliance Infrastructure

In a significant relief for Reliance Infrastructure, the National Company Law Appellate Tribunal (NCLAT) on Wednesday stayed the insolvency proceedings initiated against the company.In a regulatory filing, Reliance Infrastructure confirmed that the appellate tribunal has suspended the earlier order passed by the National Company Law Tribunal (NCLT), Mumbai, reported PTI."In the appeal filed, the NCLAT, today has suspended the Order dated May 30, 2025 passed by 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.On May 30, the Mumbai bench of the NCLT had admitted an insolvency plea filed by IDBI Trusteeship Services Ltd against Reliance Infrastructure.The plea was contested by Reliance Infra, which argued that the entire amount of Rs 92.68 crore had already been paid to Dhursar Solar Power Pvt Ltd against tariff claims, rendering the insolvency petition infructuous."The company has made full payment of Rs 92.68 crore to Dhursar Solar Power Private Limited, towards claim of tariff as per the Energy Purchase Agreement with the company," Reliance Infra said in a stock exchange filing dated June 2.

The dispute traces back to April 2022, when IDBI Trusteeship filed a petition seeking to initiate a Corporate Insolvency Resolution Process (CIRP) against Reliance Infrastructure, alleging a default of Rs 88.68 crore as of August 28, 2018, along with interest.The default related to ten invoices issued between 2017 and 2018 by Dhursar Solar Power Private Ltd (DSPPL) for the supply of solar energy to Reliance Infrastructure. IDBI Trusteeship, as the security trustee for DSPPL, was seeking repayment of those dues.