IL&FS 90-day debt resolution: NCLAT says lockdown period will be excluded

Our Bureau Mumbai | Updated on April 03, 2020

NCLAT has said that the period of lockdown will be excluded from the 90-day deadline set for the completing the debt resolution process of IL&FS.

"The period of lockdown/shutdown ordered by the Central Government and the State Governments shall be excluded for the purpose of counting the period of 90 days as has been ordered by this Appellate Tribunal vide judgment dated 12th March, 2020," it said. Justice Bansi Lal Bhat, along with Justice Anant Bijay Singh and Ashok Kumar Mishra, Member (Technical) stated that as per the previous orders of appeals coming up for listing on April 14, the same will not be applicable now. Next date of hearing will be notified later, NCLAT said.

The issue on hand relates to the insolvency proceedings of IL&FS. On March 12, NCLAT rejected the objections raised by creditors over distribution of funds under the revised distribution framework. Justice S J Mukhopadhyaya rejected the opposition of creditors saying that the money invested in IL&FS by SBI, LIC, the ILFS Employees Welfare Trust and others be constituted as public money and hence the distribution framework under the Insolvency and Bankruptcy Code (IBC) should not be followed. In accordance, it set a time limit of 90 days for concluding the resolution process.

IL&FS has a total debt of ₹94,215 crore and resolution plans amounting to ₹40,000 crore have been approved for various group entities.

Published on April 03, 2020

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