IL&FS Mess: NCLAT Stays All Proceedings Against IL&FS, its 348 Group Companies
Moneylife Digital Team 15 October 2018
The National Company Law Appellate Tribunal (NCLAT) on Monday stayed all proceedings against Infrastructure Leasing and Financial Services (IL&FS) and its 348 group companies till further order.
 
The order came over an urgent petition moved by the Ministry of Corporate Affairs after the Mumbai Bench of the National Company Law Tribunal (NCLT) turned down its plea for 90 days moratorium over the loans taken by IL&FS and its subsidiaries.
 
The bench of Justice SJ Mukhopadhaya and Justice AIS Cheema, in its order, noted, "...we find that the NCLT while accepted that no petition under any of the provision of the Insolvency and Bankruptcy Code (I&B Code) can be preferred by any party for initiation of ‘Corporate Insolvency Resolution Process’ against IL&FS and its 348 Group Companies till the Central Government issue appropriate notification with regard to one or other making the provisions applicable to them, refused to pass the interim order in view of prayer of ‘Moratorium’ made by the Appellant-‘Union of India’.
 
Otherwise the Tribunal has appreciated the difficulties, which are being faced by the ‘IL&FS’ and its 348 Group Companies."
 
The NCLAT also asked top five lenders of IL&FS to submit their replies over the government’s plea for 90 days moratorium. 
 
The government had requested the NCLT to restrain other creditors of IL&FS from filing suits, in case of non-repayment of loans.
 
Next hearing in this matter is scheduled on 13 November 2018.
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