SC sets aside NCLAT nod to Byju’s settlement with BCCI
Observing that the NCLAT did not apply its mind while delivering the impugned decision, the apex court directed a fresh adjudication on the insolvency proceedings.
The National Company Law Appellate Tribunal (NCLAT) said on Monday the accounts of cash-strapped Infrastructure Leasing and Financial Services (IL&FS) and its group companies would not be declared non-performing assets (NPA) without approval from the appellate tribunal. The order on IL&FS accounts was issued by a two-member bench headed by NCLAT Chairman Justice (Retd.) SJ Mukhopadhyay, which was hearing an application moved by some of the lenders.
“No IL&FS or its subsidiaries’ account to be declared NPA by any financial institution without approval from NCLAT,” said the tribunal.
The NCLAT had on February 11 said subsidiaries of IL&FS would be divided into three categories — Green, Amber and Red — based on their respective financial positions. Green companies are those that can meet all debt obligations), Amber ones are able to meet some debt obligations, while the Red firms can’t meet any debt obligations.
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During that hearing, the tribunal had allowed 22 green category companies to service their debt obligations.
It had approved the appointment of former Supreme Court judge Justice DK Jain to supervise the resolution process of the crisis-hit IL&FS, and also lifted the moratorium allowing 133 IL&FS firms incorporated outside India to continue with the resolution process.
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