# In the matter of RPL Solar Power Private Limited

> NCLT judgment dated 2024-11-26. Citation: TCN-2024-NCLT-00163. The case involves a Company Petition filed by Reliance Commercial Finance Ltd. against RPL…

- **Court:** NCLT
- **Order date:** 26 Nov 2024
- **Citation:** TCN-2024-NCLT-00163
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rpl-solar-power-private-limited-f4a579aa

## Summary

### Background

The case involves a Company Petition filed by Reliance Commercial Finance Ltd. against RPL Solar Power Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) due to default in payment of a financial debt. The financial debt amounts to Rs. 5,04,6835,205/-, comprising principal, interest, and penal interest. The loan facilities were initially extended by Reliance Home Finance Limited and later assigned to Reliance Commercial Finance Limited.

## Facts

Reliance Commercial Finance Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against RPL Solar Power Private Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The petition was filed due to a default in repayment of a total financial debt of Rs. 5,04,6835,205/-, which includes a principal amount of Rs. 1,81,00,00,000/-, interest of Rs. 1,34,77,84,520/-, and penal interest of Rs. 1,88,90,50,685/-. The debt arose from three loan facilities initially extended by Reliance Home Finance Limited to RPL Solar Power Private Limited. These loan facilities were later assigned to Reliance Commercial Finance Limited via a Deed of Assignment dated 31/03/2023. The Corporate Debtor admitted to facing financial stress and

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## Issues and analysis

### Issue 1: Whether RPL Solar Power Private Limited defaulted on its financial obligations to Reliance …

**Ratio:** The Hon'ble Supreme Court held that the moment the adjudicating authority is satisfied

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**Reasoning:** The court found that RPL Solar Power Private Limited had defaulted on its financial

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**Interpretation:** This interpretation reinforces the mandatory nature of admitting a Section 7

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**Application:** Given the established debt and default, the court applied the ratio from

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** Reliance Commercia…
- **Respondents:** RPL Solar Power…

## Timeline

- **2019-03-10 — Date of D…**: The date of default is…
- **2023-03-31 — Deed of Ass…**: Loan facilities assigned to Financial Creditor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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