No bank or financial institution can declare the accounts of debt-ridden IL&FS and its group companies as non-performing assets (NPAs) without NCLAT’s permission, the appellate tribunal said Monday.
A two-member National Company Law Appellate Tribunal (NCLAT) bench, headed by Chairman Justice SJ Mukhopadhaya, said that this is done in the interest of IL&FS debt resolution plan. “No IL&FS or its subsidiaries’ account to be declared NPA by any financial institution without approval from NCLAT,” the appellate tribunal said.
The tribunal’s direction came during the hearing over the government’s plan for the resolution of IL&FS group companies. During the last hearing on February 11, NCLAT had allowed 22 companies of IL&FS group, which were classified in the green category based on their financial health, to service their debt obligations. Read More