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

Our Bureau Mumbai | Updated on April 03, 2020 Published 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

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.