NCLAT Halts Insolvency Order Against Reliance Infrastructure

Fast Summary

• Reliance Infrastructure Ltd. (RInfra) announced that the National Company Law Appellate Tribunal (NCLAT), New Delhi, stayed the insolvency order against the company.
• The insolvency order had originally been issued by the National Company Law Tribunal (NCLT), Mumbai, on May 30 following a petition filed by IDBI Trusteeship Services Ltd., representing Dhursar Solar Power.
• IDBI Trusteeship Services alleged RInfraS default of ₹88.68 crore and claimed additional interest from August 28, 2018.
• RInfra later settled its dues with a payment of ₹92.68 crore to Dhursar Solar Power as per their energy purchase agreement and appealed before NCLAT.
• NCLAT will next hear this matter further on August 27.

Indian Opinion analysis
The resolution of insolvency proceedings against Reliance Infrastructure reflects corporate India’s ability to navigate debt claims through financial settlements and legal appeals effectively, possibly reducing prolonged legal entanglements for businesses in distress. This development may strengthen investor confidence as it signals the capacity for timely dispute resolution within India’s legal framework and corporate compliance systems at large. The case also underlines how adherence to agreements like energy purchase contracts remains essential in avoiding litigation for operational creditors while safeguarding business relationships amid financial challenges.

Read More