NCLT Mumbai Dismisses Housekeeping Services Firm's Insolvency Plea Against RCom Arm Reliance Realty

The National Company Law Tribunal (NCLT) at Mumbai has dismissed an insolvency petition filed by A2Z Infraservices Ltd against Reliance Realty Ltd, a subsidiary of debt-ridden Reliance Communications Ltd, holding that the bills relied upon by the operational creditor had not become payable under the contract and therefore could not establish any default. The tribunal found that the work orders between the parties made certification of invoices by a designated officer of Reliance Realty mandatory before any payment obligation could arise. Since none of the invoices forming the basis of the insolvency claim were certified, the tribunal held that no debt had fallen due. A bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar, in an order dated December 16, 2025, observed: “Accordingly, in our considered view no default can be said to exist in relation to the invoices, which are not duly certified by the designated officer, as in the absence of said certification, the invoices claim to the default in the present petition cannot said to have fallen due for payment.” The dispute arose from housekeeping services rendered by A2Z Infraservices, a facility managemnt firm to Reliance Realty at the Dhirubhai Ambani Knowledge City in Mumbai, under multiple work orders issued between August 2016 and June 2017. A2Z claimed non-payment of invoices aggregating to Rs 4.09 crore and asserted that the date of default was May 31, 2016. It issued a demand notice to Reliance Realty on August 29, 2018, and subsequently filed the insolvency application on May 9, 2019. Opposing the application, Reliance Realty argued that a majority of the invoices had either already been paid, were not received, or had not become payable under the contractual terms. It pointed out that the work orders expressly required invoices to be certified by its designated officer before payment could be demanded, and that payment was contractually due only after 30 days from the date of such certification. Reliance said that not a single invoice relied upon by A2Z carried the required certification. The tribunal noted that it had earlier dismissed the insolvency petition on February 9, 2023, on the ground of limitation. However, that decision was set aside by the National Company Law Appellate Tribunal (NCLAT) by an order dated December 12, 2023, which held that the application was within limitation and directed the NCLT to decide the matter on merits. Upon reconsideration, the tribunal examined the contractual framework and referred to clause 5 of the work orders, which made certification of invoices a condition precedent for payment. It found that A2Z Infraservices had failed to place any material on record to show that the invoices were certified or that the certification requirement had been waived in earlier dealings between the parties. The tribunal further observed that invoices which had not become due for payment could not give rise to a default under the Insolvency and Bankruptcy Code. It added that determining whether the invoices had actually fallen due would require adjudication of disputed facts, which is impermissible in summary insolvency proceedings. Holding that no legally payable dues or proven default had been established, the tribunal dismissed the insolvency petition filed by A2Z Infraservices Ltd Case Title: A2Z Infraservices Limited vs Reliance Realty Limited Case Number: RCP (IBC)/23(MB)2025 in CP(IB)/3253(MB)2019 For Operational Creditor: Advocate Ravish Mishra For Corporate Debtor: Advocates Tushad Kakalia, S. Bharucha, Ayaan Zariwalla, Bhakti ChandaClick Here To Read/Download Order

NCLT Mumbai Dismisses Housekeeping Services Firm's Insolvency Plea Against RCom Arm Reliance Realty

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NCLT Mumbai Dismisses Housekeeping Services Firm's Insolvency Plea Against RCom Arm Reliance Realty

Kirit Singhania

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