The National Company Law Appellate Tribunal (NCLAT) on Thursday rejected the objections raised by creditors over distribution of funds under the revised distribution framework in the Infrastructure Leasing and Financial Services (IL&FS) matter, saying it would be against public interest.
“We accept the suggestion of pro-rata distribution as suggested by Union of India and the procedure as suggested by it for the purpose of completing the resolution process,” said NCLAT Chairman S J Mukhopadhaya.
The board of IL&FS in an affidavit to the NCLAT had asked the tribunal to direct all financial creditors of the relevant IL&FS group entities, including group lenders, to be part of the committee of creditors — a move contested by the creditors.
