IIFCL UK Initiates NCLT Action Against Reliance Infrastructure Over ₹1,745 Crore Debt

IIFCL UK moved the National Company Law Tribunal (NCLT) seeking to initiate corporate insolvency resolution proceedings against the Reliance group company over outstanding dues related to external commercial borrowings (ECB). The lender alleged that Mumbai Metro One has defaulted on its obligations, triggering the insolvency petition.

However, the NCLT has flagged several procedural deficiencies in the petition, including limitations under insolvency law and potential violations of Section 10A of the Insolvency and Bankruptcy Code. The tribunal has raised concerns regarding the admissibility of the case as currently presented.

Mumbai Metro One operates the Delhi Metro's priority corridors and has long-standing debt obligations from external sources. The company is a key infrastructure asset within the Reliance Infrastructure portfolio, which has faced financial stress in recent years. The legal challenge underscores broader concerns about debt management within major infrastructure firms.

The NCLT's observations regarding procedural defects suggest the petition may require substantial amendments before the tribunal can proceed with formally admitting the insolvency application. The outcome of this case could have implications for how foreign lenders pursue claims against Indian infrastructure companies facing financial difficulties.