No bank or financial institution can declare the accounts of debt-ridden IL&FS and its group companies as non-performing assets (NPAs) without NCLAT’s permission, the appellate tribunal said on Monday.
A two-member National Company Law Appellate Tribunal (NCLAT) bench, headed by Chairman Justice S J Mukhopadhaya, said this is done in the interest of IL&FS debt resolution plan.
“…We make it clear that due to non-payment of dues by the ‘Infrastructure Leasing & Financial Services Ltd’ or its entities including the ‘Amber Companies’, no financial institution will declare the accounts of ‘Infrastructure Leasing & Financial Services Limited’ or its entities as ‘NPA’ without prior permission of this Appellate Tribunal,” it said.
The tribunal’s direction came after the hearing of an application moved by the Government, which is going ahead with plan for the resolution of IL&FS group companies.
