IL&FS to withdraw plea by previous board seeking restructuring option

The previous board had moved the NCLT seeking the tribunal's direction to insulate itself fron Insolvency and Bankruptcy Code proceedings

An earlier plea moved by the beleaguered Infrastructure Leasing and Financial Services (IL&FS) for restructuring under the Companies Act will be withdrawn in the coming days.

On Wednesday, the National Company Law Tribunal (NCLT) in Mumbai granted permission to IL&FS to withdraw its petition moved under Section 230 of the Companies Act on September 25. 

Section 230 of the Companies Act is a mechanism that companies can use to restructure their balance sheets through direct talks with their creditors.

The NCLT directed IL&FS' legal representative, Cyril Amarchand Mangaldas, to file a fresh petition for withdrawal of the original petition. 

After the