New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Friday ordered debt-laden Infrastructure Leasing and Financial Services (IL&FS) Ltd to submit details of all arbitral proceedings that are underway against the company and its 348 subsidiaries. A two-member NCLAT bench headed by chairperson Justice S.J. Mukhopadhaya also stayed all arbitration proceedings against IL&FS. However,arbitration proceedings where IL&FS was getting money will continue, the appellate tribunal said.
The NCLAT also suggested that further proceedings for transfer of assets of IL&FS should take place under the supervision of a retired Supreme Court judge.
The matter will be next heard on 28 January.
The road assets, classified under IL&FS’ domestic roads vertical and which include the company’s engineering, procurement and construction (EPC) as well as operation and maintenance (O&M) businesses, were put on sale as part of its debt resolution plan.
Serial debt defaults at the parent company and its subsidiaries, which triggered a liquidity squeeze in the non-banking financial sector (NBFC), had prompted the government to supersede the IL&FS board on 1 October 2018. The group is undertaking a series of asset monetisation programmes to pay off Rs 91,000 crore debt. These include sale of its securities business, renewable energy assets, roads portfolio and EPC capabilities.
On Wednesday, IL& FS said it had received over 30 expressions of interest (EOIs) for its road assets, which were being scrutinised.
The NCLAT was hearing a petition from Union Bank of India seeking initiation of insolvency proceedings against IL&FS.
On October 15, the NCLAT had stayed all proceedings against the IL&FS group and its 348 firms till further orders, over an urgent petition moved by the government. The Ministry of Corporate Affairs had approached the appellate tribunal after the Mumbai bench of the National Company Law Tribunal (NCLT) turned down its plea of granting a 90-day moratorium over loans taken by IL&FS and its subsidiaries.
The NCLT, on 1 October, suspended the IL&FS board on the government’s plea, and authorised reconstitution of the board by appointing seven directors two days later.
IL&FS accumulated a debt of more than Rs 91,000 crore and defaulted on some of its commitments. At present, the newly appointed board is trying to sell off the assets of the group to reduce debt and revive the company.