New Delhi: An appeals bench dealing with bankruptcies said Monday that exposure to IL&FS and its units can’t be treated as a non-performing loan until the court itself declared such debt as bad, giving relief to high-street banks and funds that had advanced cash to the stressed infrastructure financier.
“No account of the IL&FS or its subsidiaries be declared NPA by any financial institution without approval from the National Company Law Appellate Tribunal,” a two-judge NCLAT bench, led by Justice SJ Mukhopadhaya, said in its ruling on Monday.
This has been done in the interest of the IL&FS debt resolution plan, the NCLAT said.
