NCLAT Upholds Dismissal of Reliance Realty's Insolvency Plea Against Altruist

The National Company Law Appellate Tribunal (NCLAT) rejected Reliance Realty's appeal for insolvency proceedings against Altruist Customer Management, citing a pre-existing dispute over rental dues. The original petition was dismissed by the National Company Law Tribunal (NCLT) due to the dispute disclosed under Section 9 of the IBC.

The National Company Law Appellate Tribunal (NCLAT) has upheld a previous decision rejecting an insolvency plea made by Reliance Realty against Altruist Customer Management. The dismissal was originally issued by the National Company Law Tribunal (NCLT), which cited a pre-existing dispute over Rs 24.34 crore in rental dues.

Reliance Realty sought insolvency proceedings under Section 9 of the Insolvency and Bankruptcy Code (IBC), claiming operational debt from rental obligations owed by Altruist for use of a premise in Thane, Maharashtra. However, the NCLT's dismissal was backed by NCLAT, which found the dispute genuine and predating the insolvency petition.

NCLAT stressed that its role is not to resolve complex disputes when credible disagreements are evident, instead noting that such matters should be settled with evidence under the Indian Evidence Act. The dismissal, handed in a 53-page order, closes Reliance Realty's appeal without costs.