Insolvency proceedings against Anil Ambani-owned Reliance Infra suspended
What's the story
The National Company Law Appellate Tribunal (NCLAT) has stayed the insolvency proceedings against Anil Ambani-owned Reliance Infrastructure. The decision comes after an appeal was filed against a Mumbai bench of the National Company Law Tribunal (NCLT), which had admitted an insolvency plea by IDBI Trusteeship Services Ltd. Reliance Infra argued that it had already paid the full amount of ₹92.68 crore related to tariff claims from Dhursar Solar Power Pvt Ltd, making the insolvency petition invalid.
Proceedings
NCLT admitted insolvency plea last month
Last month, the Mumbai bench of NCLT admitted an insolvency plea filed by IDBI Trusteeship Services Ltd against Reliance Infrastructure. The plea was contested by Reliance, which argued that it had already made full payment of ₹92.68 crore to Dhursar Solar Power Pvt Ltd toward tariff claims, as per the Energy Purchase Agreement with the company.
Origins
Background of the dispute
The dispute with Reliance Infra dates back to April 2022, when IDBI Trusteeship Services Ltd filed a plea seeking to start a Corporate Insolvency Resolution Process (CIRP) against Reliance Infrastructure. The plea alleged a default of ₹88.68 crore as of August 28, 2018, along with interest. This default was in connection with 10 invoices that were raised between 2017 and 2018 by Dhursar for solar power supply to Reliance Infrastructure.
Information
A look at the stock price
Today, Reliance Infrastructure opened at ₹342 per share on the National Stock Exchange (NSE) and closed at ₹380.05, which is up 11.11%. Meanwhile, on the Bombay Stock Exchange (BSE), it opened at ₹342.10 and closed at ₹380.50 (up 11.27%).