Former SC judge should conduct IL&FS asset sales proceeding, suggests NCLAT

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New Delhi, Jan 11: The National Company Law Appellate Tribunal (NCLAT) Friday suggested that all further proceedings for transfer of assets of crisis-hit Infrastructure Leasing and Financial Services Ltd (IL&FS) should take place under the supervision of a retired Supreme Court judge.
The new management of the IL&FS is considering assets sales to bail out the company from its financial mess and pay back to its lenders over Rs 90,000 crore.
“As it appears that a process required to be followed, similar to corporate insolvency resolution process, for the purpose of proper resolution of IL&FS and its subsidiaries,” said a two judge bench headed by Justice S J Mukhopadhaya.
It further added that in such a case, a Committee of Creditors may be required to be formed for determining liability, feasibility and financial matrix for resolution plan for one or other assets.
“Appellate Tribunal will suggest to government and IL&FS to get matter supervised by a retired SC Judge,” the bench added.
NCLAT also directed IL&FS to submit all details of the arbitration proceedings going against it and its 348 group companies.
“IL&FS will provide details of all arbitral proceeding against it and its 348 subsidiaries. We observe that proceeding, if any pending before IL&FS or its 348 subsidiaries may proceed with claims and counter claims,” it said.
NCLAT directed to list the matter on January 28 for next hearing, when it would hear the matter of granting moratorium to IL&FS and group companies.