NCLAT allows 22 IL&FS Group firms to service debt obligations

New Delhi, February 11

The National Company Law Appellate Tribunal (NCLAT) today allowed 22 companies of crisis-hit IL&FS Group to service their debt obligations.

Besides, a two-member Bench headed by Justice SJ Mukhopadhaya approved appointment of former Supreme Court judge Justice DK Jain to supervise resolution process of IL&FS group. The appellate tribunal also lifted moratorium and allowed 133 IL&FS firms incorporated outside India to continue with the resolution process.

“We allow (companies under green categories) the Board to permit the company to service debt obligations as per schedule,” the firm said.

The NCLAT was hearing the government plea over IL&FS Group. Earlier this month, the Corporate Affairs Ministry submitted the debt resolution plan for IL&FS.

The entire resolution process would be based on the principles enunciated in the Insolvency and Bankruptcy Code, as per the ministry.

Under the plan, the government has categorised IL&FS Group companies into green, amber and red based on their respective financial positions.

Companies under the green category would be those that continue to meet their payment obligations.

Amber category would be for those companies that would not be able to meet their obligations but can meet only operational payment obligations to senior secured financial creditors. — PTI

Moratorium lifted on firms registered abroad 

• The appellate tribunal also lifted moratorium and allowed 133 IL&FS firms incorporated outside India to continue with the resolution process

• Earlier this month, the Corporate Affairs Ministry submitted the debt resolution plan for IL&FS

• The entire resolution process would be based on the principles enunciated in the Insolvency and Bankruptcy Code, as per the ministry

• Under the plan, the government has categorised IL&FS Group companies into green, amber and red based on their respective financial positions