NCLAT Stays Insolvency Order Against Reliance Infrastructure

On June 4, 2025, the National Company Law Appellate Tribunal (NCLAT) stayed an earlier order issued by the Mumbai bench of the National Company Law Tribunal (NCLT), which had admitted Reliance Infrastructure into the Corporate Insolvency Resolution Process (CIRP). The order, passed on May 30, 2025, followed a plea filed by IDBI Trusteeship Services Ltd over an alleged default of ₹88.68 crore.

Background of the Dispute

The case stems from a 2011 Energy Purchase Agreement between Reliance Infrastructure and Dhursar Solar Power Private Ltd (DSPPL). Under this agreement, Reliance Infrastructure was obligated to purchase power generated by DSPPL. In 2012, DSPPL signed a direct agreement with IDBI Trusteeship Services Ltd, making it the security trustee for payment obligations under the deal.

Between 2017 and 2018, DSPPL issued 10 invoices for power supplied to Reliance Infrastructure. Citing unpaid dues, IDBI Trusteeship filed an insolvency petition in April 2022 under the Insolvency and Bankruptcy Code.

NCLT’s May 30 Order

The NCLT observed that the debt claimed by IDBI Trusteeship was proven and that Reliance Infrastructure had defaulted. The tribunal admitted the petition and appointed Tehseen Fatima Khatri as an interim resolution professional. It also rejected Reliance Infrastructure’s request to stay the CIRP or halt the IRP appointment, stating that no such provision exists once the CIRP has begun.

Read more: Reliance Infrastructure Aims for ₹3,000 Crore in Defence Exports in Next 2 Years!

Reliance Infra’s Response and Appeal

Reliance Infrastructure stated in a regulatory filing that it had fully paid ₹92.68 crore to DSPPL. It also argued that the insolvency plea was not maintainable due to a pre-existing dispute and that the claim was time-barred, with the last invoice dated September 2018. The company filed an appeal with NCLAT, which led to the suspension of the NCLT’s order.

Reliance Infra Share Performance

As of 10:37 AM on June 5, 2025, Reliance Infra share price was trading at ₹365, a 4.10% decrease, with a 20.82% increase over the past 6 months and a 143.45% increase over the past year.

Conclusion

The insolvency process has been temporarily halted. Further proceedings will depend on the NCLAT’s final decision on the matter.

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