The National Company Law Appellate Tribunal (NCLAT) has approved Central Government’s resolution framework for debt-ridden ‘Infrastructure Leasing and Financial Services Limited (IL&FS)
While accepting Centre’s framework which provides for a pro-rata distribution of assets, the Appellate Tribunal has opined that it was not inclined to follow the procedure of Insolvency & Bankruptcy Code in the case, including Section 53, due to public interest involved in the case.
The resolution plan according to the framework as suggested by the Central Government shall be implemented within 90 days, NCLAT has ordered.
The NCLAT has further held that the National Company Law Tribunal (NCLT) can follow the principles of Insolvency and Bankruptcy Code while dealing with a winding-up matter or a matter under Section 241 r/w Section 242, particularly in a case under Section 241(2) which relates to public interest.
The Judgment was passed by a two-member Bench of Chairperson Justice SJ Mukhopadhaya and Member (Judicial) Justice Bansi Lal Bhat. (Union of India vs Infrastructure Leasing & Financial Services Ltd. & Ors)