Reliance Infrastructure Wins Legal Battle: Insolvency Proceedings Halted

Reliance Infrastructure Ltd has successfully averted insolvency proceedings after the National Company Law Appellate Tribunal (NCLAT) stayed a previous order by the National Company Law Tribunal (NCLT). The move comes after the company repaid Rs 92.68 crore under an energy purchase agreement.

Earlier this year, the Mumbai bench of the NCLT had called for a corporate insolvency resolution process following a petition by IDBI Trusteeship. The petition alleged a default of Rs 88.68 crore plus interest on invoices from 2017 to 2018.

The repayment was made to Dhursar Solar Power Pvt Ltd, the entity supplying solar energy, as per the Energy Purchase Agreement. NCLAT suspended the NCLT's order after the full payment was confirmed, giving Reliance Infrastructure a crucial victory.

(With inputs from agencies.)