NEW DELHI: No bank or monetary establishment can claim the accounts of debt-ridden IL&FS and its group corporations as non-performing belongings (NPAs) without NCLAT's permission, the appellate tribunal said on Monday. A two-member National Company Law Appellate Tribunal (NCLAT) bench, headed by way of chairman Justice S J Mukhopadhaya, said that this is finished in the interest of IL&FS debt answer 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 course got here during the hearing over the government's plan for the answer of IL&FS group corporations.
During the last hearing on February 11, NCLAT had allowed 22 corporations of IL&FS group, which were categorized in the inexperienced category in keeping with their monetary health, to carrier their debt responsibilities.
Besides, it had also approved the appointment of former Supreme Court judge Justice D Okay Jain to oversee the answer strategy of crisis-hit IL&FS and its group corporations.
The appellate tribunal also lifted the moratorium and allowed 133 IL&FS corporations integrated out of doors India to continue with the answer procedure.
IL&FS group corporations are categorized into three teams -- Green, Amber and Red -- in keeping with their respective monetary positions.
The corporations falling under inexperienced category will continue to fulfill their cost obligation. While the firms which can't meet their responsibilities but can meet handiest operational cost responsibilities to senior secured monetary collectors are categorized as amber.
The red category comprises those entities which can not meet their cost responsibilities against even senior secured monetary collectors.
"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 course got here during the hearing over the government's plan for the answer of IL&FS group corporations.
During the last hearing on February 11, NCLAT had allowed 22 corporations of IL&FS group, which were categorized in the inexperienced category in keeping with their monetary health, to carrier their debt responsibilities.
Besides, it had also approved the appointment of former Supreme Court judge Justice D Okay Jain to oversee the answer strategy of crisis-hit IL&FS and its group corporations.
The appellate tribunal also lifted the moratorium and allowed 133 IL&FS corporations integrated out of doors India to continue with the answer procedure.
IL&FS group corporations are categorized into three teams -- Green, Amber and Red -- in keeping with their respective monetary positions.
The corporations falling under inexperienced category will continue to fulfill their cost obligation. While the firms which can't meet their responsibilities but can meet handiest operational cost responsibilities to senior secured monetary collectors are categorized as amber.
The red category comprises those entities which can not meet their cost responsibilities against even senior secured monetary collectors.
Accounts of IL&FS, group companies can't be declared NPAs without NCLAT nod
![Accounts of IL&FS, group companies can't be declared NPAs without NCLAT nod]()
Reviewed by Kailash
on
February 25, 2019
Rating:
