RInfra Settles Dues To Dodge Insolvency Bullet; To Seek NCLT Order Withdrawal
Reliance Infrastructure makes full payment of 92.68 crore rupees to Dhursar Solar Power and will ask NCLAT for the withdrawal of NCLT’s order
(The Corner Office Journal) -- Reliance Infrastructure Ltd. (RInfra) settled the outstanding dues of Dhursar Solar Power Private Ltd. to dodge the insolvency bullet and will seek the withdrawal of the National Company Law Tribunal’s (NCLT) order against the company.
RInfra has made full payment of 92.68 crore rupees ($10.83 million) to Dhursar Solar Power against the claim of tariff as per the energy purchase agreement with the company, the infrastructure developer said in a stock exchange announcement.
Accordingly, RInfra preferred an appeal before the National Company Law Appellate Tribunal (NCLAT) and will seek the withdrawal of the NCLT’s 30 May order for corporate insolvency resolution process (CIRP) and appointment of an interim resolution professional, it added.
“The NCLT order has become infructuous as legally advised, upon full payment having already been made,” RInfra’s Company Secretary Paresh Rathod said.
RInfra said there’s no impact or bearing of the NCLT order on the company, or any of its subsidiaries.
Insolvency Order
The development comes after the Mumbai bench of the NCLT admitted RInfra for insolvency resolution following a petition filed by IDBI Trusteeship Services Ltd., being the security trustee of Dhursar Solar Power.
IDBI Trusteeship filed the petition in April 2022 under Section 9 of the Insolvency and Bankruptcy Code (IBC) for initiating CIRP against RInfra. The operational creditor had alleged a default of 88.68 crore rupees ($10 million) as of 28 August 2018 as well as interest at 1.25% per month from 30 days of the date of receipt of each invoice until the payment date.
It was based on default in the payment of 10 invoices issued by Dhursar Solar Power for supplying solar energy to RInfra as per the energy purchase agreement in 2012.
The NCLT, which passed RInfra’s insolvency order on 30 May, also appointed Tehseen Fatima Khatri as the interim resolution professional of the company.
The bench, comprising Judicial Member K.R. Saji Kumar and Technical Member Sanjiv Dutt, had also rejected RInfra’s request to stay the CIRP admission order, as well as directing the appointed interim resolution professional not to take charge of the company.
Note: $1 = 85.6032 Indian rupees
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