The National Company Law Appellate Tribunal (NCLAT) on Thursday accepted a fresh distribution framework based on “pro-rata distribution” among creditors of debt-ridden IL&FS group from the proceeds of the sale, as suggested by the government.
A two-member bench headed by Chairman Justice S J Mukhopadhaya said that the resolution framework should be “fair and equitable” and should ensure that interests of all stakeholders are considered and balanced.
The appellate tribunal rejected the objections raised by the creditors, which wanted the NCLAT to follow Section 53 of IBC for distribution of funds, the appellate tribunal said that it would be against the public interest as the money invested by these public funds, in fact belonged to share and unit holders.
