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IL&FS, subsidiaries can be declared NPAs only after nod, says NCLAT

Step being taken in the interest of the resolution plan being executed by the new board of IL&FS, observes NCLAT

IL&FS
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IL&FS

Aashish Aryan New Delhi
The National Company Law Appellate Tribunal (NCLAT) on Monday ruled that accounts of Infrastructure Leasing & Financial Services (IL&FS) and its subsidiaries could not be classified as non-performing assets (NPAs) without approval from the tribunal.

“Without going into the rival contention of the parties, we make it clear that due to non-payment of dues by the IL&FS or its entities including the amber companies, no financial institution will declare the accounts as an NPA without prior permission of this appellate tribunal,” a two-judge Bench led by Chairperson Justice S J Mukhopadhaya said.

The Reserve Bank of India (RBI) had earlier

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First Published: Feb 25 2019 | 7:01 PM IST

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