Directs firm to submit details of arbitral proceedings

The National Company Law Appellate Tribunal (NCLAT) on Friday suggested that all further proceedings for transfer of assets of crisis-hit IL&FS should take place under the supervision of a retired Supreme Court judge.

The new management of the Infrastructure Leasing and Financial Services Ltd (IL&FS) is considering assets sales to bail out the company from its financial mess and pay back to its lenders over ₹90,000 crore.

Process required

“As it appears, a process is required to be followed, similar to corporate insolvency resolution process, for the purpose of proper resolution of IL&FS and its subsidiaries,” said a two-judge bench headed by Justice S. J. Mukhopadhaya.

It added that in such a case, a committee of creditors (CoC) may be required to be formed for determining “viability, feasibility and financial matrix of the plan or offer, if any, given by one or other party for acquisition of one or other group companies or its assets.”

“In such case, parties are directed to address as to why this appellate tribunal will not direct that while [the] matter is to be supervised by a retired Supreme Court Judge,” the appellate tribunal said.

Meanwhile, the NCLAT also clarified that “ILFS and its board may be allowed to proceed with the matter.”

The NCLAT also directed IL&FS to submit all details of the arbitration proceedings going against it and its 348 group companies.

“IL&FS will provide the details of arbitral proceedings filed by it or by any of its group companies or filed against IL&FS or any of its group companies by the next date,” said the NCLAT.