NCLT Rules Resolution Plan as Non-implementable for RCIL; Directs CoC Meeting

NCLT Rules Resolution Plan as Non-implementable for RCIL; Directs CoC Meeting​

The National Company Law Tribunal (NCLT) has ruled that the approved Resolution Plan for Reliance Communications Infrastructure Limited (RCIL), a subsidiary of Reliance Communications Limited, is currently non-implementable in its present form. The tribunal directed the erstwhile Resolution Professional to convene a meeting of the Committee of Creditors (CoC) within 30 days to determine a future course of action.

The NCLT's order, dated August 21, 2026, addressed applications related to the implementation of the plan approved previously on December 19, 2023. The decision highlighted critical shortfalls concerning mandatory payments owed to Dissenting Financial Creditors (DFCs).

According to the court proceedings and disclosure details, the Corporate Debtor's liquidation value was estimated at Rs 428.51 crore.

Plan Status and Financial Shortfalls​

The NCLT found that the financial structure of the approved Resolution Plan presented difficulties in execution. The total available liquid funds with the Resolution Professional were estimated to be Rs 266.72 crores. This figure comprised payments due from the SRA, available cash balance for settlement, and realized proceeds from real estate sales.

However, the amount required to be paid to dissenting Financial Creditors (DFCs) was calculated at Rs 318.67 crores.

A specific point noted by the tribunal relates to the mandatory provision within the Resolution Plan stipulating that if payments are insufficient from the total financial outlay, the Resolution Applicant could infuse additional funds, which should not exceed INR 35,00,00,000. Earlier, during a monitoring committee meeting on February 2, 2026, it was noted a shortfall of Rs 26.29 crore in meeting mandatory payments.

The NCLT's findings confirmed that the plan was non-implementable because neither the SRA could be directed to deposit amounts exceeding Rs 35 crores in addition to the resolution money, nor could the tribunal compel the effective date without DFC payments being fulfilled as mandated by Clause 4.1 of Part B of the approved Resolution Plan.

Mandate for Future Action​

The ruling noted that while both Assenting and Dissenting Financial Creditors had held meetings regarding the implementation difficulties, the plan itself had rendered implementation impossible based on current terms.

In light of this, the tribunal directed the erstwhile Resolution Professional to convene a meeting of the erstwhile CoC within 30 days from the date of the order. This meeting is intended to enable the stakeholders—AFCs, DFCs, SRA, and the Resolution Professional—to discuss the non-implementability of the plan and decide on a future course of action according to their commercial wisdom.

The matter was scheduled for listing before the NCLT on September 24, 2026.

RCOM Stock Price Movement​

Reliance Communications Limited shares edged higher on Friday, concluding the trading session at ₹0.81 after gaining 1.25%. The stock saw brisk activity, with approximately 4.07 million shares traded during the period.