RInfra Says NCLAT Stays Insolvency Order; To Hear Matter In August

(The Corner Office Journal) -- Reliance Infrastructure Ltd. (RInfra) said India’s National Company Law Appellate Tribunal (NCLAT) stayed the bankruptcy court’s insolvency order against the company and will now hear the matter in August.

The NCLAT passed the order today (18 July), the infrastructure developer said in a stock exchange announcement. The order stayed the National Company Law Tribunal’s (NCLT) 30 May ruling admitting the company into corporate insolvency resolution process (CIRP), it added.

RInfra said the NCLAT is now set to the hear the matter on 27 August.

In June, the NCLAT in New Delhi had suspended the NCLT insolvency order against RInfra after the company settled its creditor’s dues.

The Mumbai bench of the NCLT admitted RInfra for insolvency resolution on 30 May following a petition filed by IDBI Trusteeship Services Ltd., being the security trustee of Dhursar Solar Power. The tribunal had also appointed Tehseen Fatima Khatri as the interim resolution professional of the company.

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.

RInfra later made full payment of 92.68 crore rupees to Dhursar Solar Power against the claim of tariff as per the energy purchase agreement with the company.

The company also appealed before the NCLAT and sought the withdrawal of the NCLT’s 30 May order for CIRP and appointment of an interim resolution professional.

Note: $1 = 86.0089 Indian rupees

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