NNEW DELHI: Reliance Infrastructure Ltd on Friday said that the National Company Law Appellate Tribunal (NCLAT) has stayed insolvency proceedings against the company after it cleared dues amounting to Rs92.68 crore related to a power purchase agreement.
In a regulatory filing, the company stated that the stay was granted by NCLAT in response to its appeal challenging an earlier order passed by the Mumbai bench of the National Company Law Tribunal (NCLT). On May 30, the NCLT had directed the initiation of corporate insolvency resolution proceedings (CIRP) against Reliance Infrastructure and the appointment of an interim resolution professional.
The NCLT order stemmed from a petition filed by IDBI Trusteeship in April 2022, which alleged a payment default of Rs88.68 crore, plus accrued interest as of August 28, 2018.
The claim was based on unpaid invoices raised between 2017 and 2018 by Dhursar Solar Power Pvt Ltd (DSPPL), which had supplied solar power to Reliance Infrastructure under an energy purchase agreement. IDBI Trusteeship, acting as the security trustee for DSPPL, brought the matter to the tribunal.
Rs92.68cr paid
However, Reliance Infrastructure said it has since made the full payment of Rs92.68 crore to DSPPL, settling the outstanding claims in full.
In a regulatory update on June 2, the company said the NCLT’s order had become “infructuous” due to the completion of payment. Subsequently, on June 4, NCLAT suspended the NCLT directive while hearing the company’s appeal.
“The company has made full payment of Rs92.68 crore to Dhursar Solar Power Private Limited, towards claim of tariff as per the Energy Purchase Agreement with the company,” Reliance Infrastructure had stated earlier.
The NCLAT stay provides temporary relief to Reliance Infrastructure, effectively putting the insolvency proceedings on hold while the matter is reviewed in light of the recent payment.
