Shares of Reliance Infrastructure Ltd rose over 11 percent on June 4, after the National Company Law Appellate Tribunal (NCLAT) put a temporary stop to insolvency proceedings against the company until July 18, the next hearing date.
This relief comes after Reliance Infra challenged an earlier decision by the NCLT Mumbai Bench, which had admitted an insolvency petition filed by IDBI Trusteeship Services Ltd. The company claimed that it had already cleared all dues, and the Insolvency and Bankruptcy Code (IBC) process should not have been initiated.
In April 2022, IDBI Trusteeship filed the petition, alleging a ₹88.68 crore default, along with interest, since August 2018. The default was on 10 invoices raised by Dhursar Solar Power Pvt Ltd (DSPPL) to Reliance Infra. IDBI Trusteeship, as security trustee for DSPPL, had asked Reliance Infra to pay.
Reliance Infra later told exchanges that it had paid ₹92.68 crore to DSPPL and approached NCLAT to set aside the earlier NCLT order as it was no longer valid after the payment.
After this update, Reliance Infra stock closed 11% higher at ₹380 on NSE. The stock has been on a roll, up 20% in 5 days, 48% in a month and 144% in a year.
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Source: Moneycontrol
News Desk
