The National Company Law Appellate Tribunal (NCLAT) on Wednesday said that if the Infrastructure Leasing & Financial Services (IL&FS) companies placed under the amber category were not able to be reclassified into the green category by the next date of hearing on July 12, the appellate tribunal will pass orders asking such companies to service 100 per cent debt obligations of the provident and pension funds. For other lenders, the NCLAT may ask the amber companies to service the debt on a “proportionate basis”, the two-judge Bench said.
The other companies of the IL&FS which are or get re-classified under the green category in future can automatically start servicing their debts. The new board of directors of IL&FS can permit such firms to service their obligations to lenders, a two-member Bench led by Chairperson Justice S J Mukhopadhaya said.
