NCLAT Expresses Displeasure Over Delay In IL&FS Resolution Process
NCLAT also asked the government to file a fresh progress report on the resolution process of IL&FS Group companies.
The National Company Law Appellate Tribunal on Thursday asked the government to file a fresh progress report on the resolution of Infrastructure Leasing and Financial Services and its group companies, while expressing displeasure at delays in the process.
An NCLAT bench, headed by Justice SJ Mukhopadhyay, said there has been no progress despite the process going on for over 300 days.
IL&FS’ counsel senior advocate Ramji Srinivasan informed the appellate tribunal at the start of the hearing that the binding documents for transition of three IL&FS Group companies from “Amber” to “Green” isn’t complete, while seeking more time.
IL&FS subsidiaries have been categorised as Green (firms that can meet all debt obligations), Amber (firms that can meet some debt obligations), and Red (firms that can’t meet any debt obligations).
NCLAT was informed during a previous hearing that three “Amber” group companies will be converted into “Green”. The counsel informed court that the term sheets for the conversion have been signed and the process would be completed soon.
On Thursday, the appellate tribunal also asked the government to file a progress report on the resolution process of “Red” group companies by Friday.
The NCLAT will now take up the case for hearing on Sept. 5.