IL&FS loan moratorium: Banks move NCLAT against stay

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New Delhi | Published: November 14, 2018 3:03:50 AM

Lenders of IL&FS group, which includes ICICI Bank and Bank of Baroda, on Tuesday opposed before the National Company Appellate Tribunal (NCLAT) the 90-day moratorium over the loans taken by the debt-laden group and its subsidiaries.

Senior counsel Ramji Srinivasan, appearing on behalf of the government, said the Centre expects the revival plan for IL&FS take six-nine months to take effect.

Lenders of IL&FS group, which includes ICICI Bank and Bank of Baroda, on Tuesday opposed before the National Company Appellate Tribunal (NCLAT) the 90-day moratorium over the loans taken by the debt-laden group and its subsidiaries.

The banks have also asked the appellate tribunal to allow them not to classify IL&FS account as non-performing asset (NPA) in case of non-payment.

Meanwhile, the government informed the appellate tribunal that it has prepared a roadmap to revamp the company. Senior counsel Ramji Srinivasan, appearing on behalf of the government, said the Centre expects the revival plan for IL&FS take six-nine months to take effect.

“We request permission to place a new roadmap before NCLAT. The new board has chalked out a new roadmap for revival which will answer lenders’ questions,” Srinivasan said.
The NCLAT has fixed December 17 as the next date of hearing.
On October 15, the NCLAT in an interim order had stayed all proceedings against IL&FS group and its 348 firms till its 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 to grant 90-day moratorium over the loans taken by IL&FS and its subsidiaries.

The NCLT on October 1 suspended the board of IL&FS on the government’s plea and authorised reconstitution of the board by appointing seven directors two days later.
Last week, IndusInd Bank had moved the NCLAT seeking to recover an interest payment of Rs 25 crore from IL&FS and also to seek a “modification in the order of the appellate tribunal”, which stayed any other proceedings against IL&FS and its 348 subsidiaries in any court of law or tribunal, barring the high courts and the Supreme Court.

IL&FS has a debt of over Rs 91,000 crore. The company and its arms have defaulted on multiple payments in the previous months.

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