The National Company Law Tribunal (NCLT) in Mumbai reserved its order on a plea by the corporate affairs ministry to grant a moratorium of 90 days on loans taken by IL&FS and its 348 group companies, a source said. The source said the MCA wanted the tribunal to restrain other creditors of IL&FS from filing suits, in the case of non-repayment of loans.
IL&FS' lawyer argued the company would face 70 to 80 legal suits across the country if the moratorium was not granted, the source said.
Such litigation challenges will impinge on the company's newly reconstituted board of directors from taking decisions.
The NCLT has reserved its order for a later date.