IL&FS crisis: IndusInd Bank moves NCLAT to recover interest of Rs 250 mn

IndusInd Bank has approached the National Company Law Appellate Tribunal to recover outstanding interest amount of Rs 250 million from crisis-hit IL&FS group to avoid being classified as an NPA account.
 

A two-member NCLAT bench headed by Chairman Justice S J Mukhopadhaya has issued notice to the government.
 

The appellate tribunal has directed to list the matter on November 13, when it would hear the main matter.
 

Last month, the government superseded the board of IL&FS to protect the interest of investors.
 

IndusInd Bank is one of the largest lenders to IL&FS group with exposure of over Rs 30 million.
 

According to the counsel appearing for IndusInd Bank, if IL&FS fails to pay the interest amount due to the bank, it will be classified as an NPA account as per the RBI guidelines. On October 15, NCLAT had stayed all proceedings against IL&FS and its 348 group firms till its further orders, over an urgent petition moved by the government.
 

"There shall be stay of the institution or continuation of suits or any other proceedings by any party or person or bank or company, etc against IL&FS and its 348 group companies in any court of law/tribunal/arbitration panel or arbitration authority," NCLAT had said.
 

The Ministry of Corporate Affairs had approached the appellate tribunal after the Mumbai bench of National Company Law Tribunal (NCLT) had 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 government's plea and had authorised reconstitution of the board by appointing seven directors two days later.
 

IndusInd Bank had to approach NCLAT as the appellate tribunal stayed all 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 burden of around Rs 300 billion.