R infra obtains a break while NCLAT suspends the insolvency procedure after full payment in DSPPL
The National Companies’ Law Court of Appeal (NCLAT) remained an insolvency against Reliance Infrastructure (R-INFRA), offering the major relief of the company after having erased the full amount of 92.68 crore ₹ to Dhursar Solar Power PVT LTD (DSPPL).
The court’s decision came in response to the appeal of R-Infra contesting the order of May 30 by the National Company Law Tribunal (NCLT), which had admitted an insolvency advocacy deposited by IDBI touring services.
Acting as a DSPPL security trustee, IDBI had deposited the petition under the Insolvency and Bankruptcy Code (IBC), 2016, alleging a defect on 10 invoices between 2017 and 2018.
“The company made a full payment of 92.68 crosses to Dhursar Solar Power Private Limited, to the price complaint in accordance with the energy purchase agreement with the company,” said R-Infra in a scholarship file on Monday. “The NCLT order has become unsuccessful as indicated legally, on the full payment of having already been made,” he added.
The dispute came from an energy purchase agreement (EPA) signed in 2011 under which DSPPL, a company based in Mumbai with solar energy operations in Rajasthan, provided a infra reliance power.
After the payment defects, the IDBI supervision noted a request for request in 2022 and approached NCLT, seeking the initiation of the Companies’ Insolvency Resolution Process (CIRP) for a defect of 88.68 ₹ (excluding interest) in August 2018.
Reliance infrastructure, on the other hand, argued that the request was crossed over time and challenged the validity of the invoices under the terms of the EPA. Despite this, NCLT Mumbai had admitted the insolvency plea on May 30.
Following the payment, R-Infra called on the NCLAT to maintain the insolvency procedure. The decision of the Appeal Tribunal to suspend the CIRP process marks temporary but important relief for the company.
