Big Relief for Reliance Infra as NCLAT Stays Insolvency Proceedings

Image Source: Business Standard

In a significant legal victory, the National Company Law Appellate Tribunal (NCLAT) has stayed insolvency proceedings against Reliance Infrastructure Ltd., overturning a previous order by the National Company Law Tribunal (NCLT), Mumbai. The decision follows Reliance Infra’s appeal, citing full payment of ₹92.68 crore to Dhursar Solar Power Pvt Ltd as per its Energy Purchase Agreement.

Key Highlights of the NCLAT Ruling:

Suspension of Insolvency Proceedings – The NCLAT has halted the Corporate Insolvency Resolution Process (CIRP) initiated against Reliance Infra, providing temporary relief to the company.
Full Payment Made – Reliance Infra argued that the ₹92.68 crore payment had already been settled, making the insolvency plea infructuous.
Stock Market Impact – Following the ruling, Reliance Infra’s share price surged 13%, hitting a 52-week high of ₹385.90.
Legal Dispute Background – The insolvency plea was originally filed by IDBI Trusteeship Services Ltd., alleging a default of ₹88.68 crore related to solar energy supply invoices from 2017-2018.

Outlook on Reliance Infra’s Financial Stability

The NCLAT’s decision provides short-term relief to Reliance Infra, but the company may still face further legal scrutiny in upcoming hearings. Investors and stakeholders will closely monitor the July 18, 2025 hearing, where the appellate tribunal will review the merits of the case.

Sources: Times of India, Rediff Money, The Week, MSN, Business Standard.