ITNL owes Rs 155 crore to Aditya Birla Finance

In a notice to the stock exchange, ITNL said ABFL had filed an application for interim injunction under Section 9 of the Indian Arbitration and Conciliation Act before the Delhi High Court.
FE had reported the development on September 22.

ITNL said it owes Rs 55 crore to ABFL for its Chenani Nashri Tunnelway project and Rs 100 crore for Pune Solapur Road Development Company.

ABFL was successful in obtaining an injunction from the Delhi High Court, barring ITNL from selling any of its road assets. Lawyers that FE spoke to at that time said the move by ABFL would put a temporary halt on the asset sale process.

According to Karan Kalra, head of financial services at Nishith Desai Associates, the Arbitration Act, which lays down the process of arbitration, has a step to grant interim relief to not dispose assets.
“The fact they have a stay order is an interim move until and unless the arbitration process is decided,” Kalra said.

IL&FS is already understood to be behind payments on commercial papers worth approximately over Rs 600 crore and inter-corporate deposits worth roughly `450 crore.
On September 25, in a preemptive move to avoid further litigation and possible insolvency proceedings, ITNL sought to prevent creditors of 13 of its infrastructure projects from hauling it to the National Company Law Tribunal (NCLT).

The company, on Monday, filed an application before the Mumbai bench of the NCLT seeking relief relating to a filing for a scheme of arrangement under Section 230 of the Companies Act.
The company is hoping to be able to restructure debt for the projects with the consent of lenders.