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IL&FS crisis: IndusInd Bank moves NCLAT to recover Rs 25 crore interest

Press Trust of India  |  New Delhi 

has approached the National Company Appellate to recover outstanding interest amount of Rs 25 crore from crisis-hit group to avoid being classified as an NPA account.

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

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

Last month, the government superseded the board of to protect the interest of investors.

is one of the largest lenders to group with exposure of over Rs 3,000 crore.

According to the 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 or company, etc against IL&FS and its 348 group companies in any court of law/tribunal/panel or authority," NCLAT had said.

The had approached the appellate after the bench of 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.

had to approach NCLAT as the appellate tribunal stayed all proceedings against IL&FS and its 348 subsidiaries in any court of or tribunal, barring the high courts and the

IL&FS has a debt burden of around Rs 30,000 crore.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, November 06 2018. 18:25 IST