IL&FS ex-dir seek clarification on asset freeze from NCLT

The former directors of the crippled IL&FS Group Wednesday approached the National Company Law Tribunal (NCLT) seeking clarification on bench's earlier order restraining them from disposing of or creating any third-party rights on their properties till January 16.

Former directors of IL&FS, except S Rengarajan, the past managing director and chief executive of IL&FS Securities Services, Wednesday sought clarification from the two-member bench of judges VP Singh and Ravikumar Duraisamy on NCLT's earlier order of December 3, 2018.

The order had restrained the former directors from mortgaging, or third-party interests or in any way alienating movable or immovable or jointly held properties.

They were also restrained from dealing in securities in any companies till January 16.

Rengarajan had moved the National Company Law Appellate Tribunal (NCLAT) against the December 3, 2018 order.

NCLAT allowed him to withdraw Rs 2 lakh per month from any one of the bank accounts after intimating the tribunal.

The NCLAT order also said Rengarajan was prohibited from withdrawing any further amount from the said or any other account until further orders.

The lawyer of Rupa Kapoor, wife of former non-executive director of IL&FS, Vaibhav Kapoor, Wednesday asked the NCLT Mumbai bench on the validity of freezing her joint account, as she was an independent person with no relation with IL&FS and regularly filed her income tax returns.

Lawyers of other former directors said as per their understanding movable properties did not include bank accounts.

The bench said since matter is sub-judice, it cannot pass any judgement on this.

The lawyers, however, said they are looking for clarification on the order and are not seeking any modification on it.

Hearing the arguments from lawyers representing the government and the former directors, the bench said it has reserved the order.