NCLAT asks IL&FS firms classified green to start paying debts

The NCLAT Wednesday asked IL&FS group companies, which are being upgraded to ‘green’ category, to start servicing their debts as per the payment schedule.

A two-member NCLAT bench headed by Chairman Justice S J Mukhopadhaya said the IL&FS board should allow the new entities, which are coming into ‘green’ list from ‘amber’ to pay their debts after getting their terms-sheet approved by the retired Supreme Court judge Justice D K Jain.

Justice Jain is supervising operations of the resolution process undertaken by debt-laden IL&FS.

The National Company Law Appellate Tribunal (NCLAT) also said that if ‘amber’ listed companies are not reclassified into ‘green’ category, then it may pass an order directing such companies to pay 100 per cent of their obligations towards provident and pension funds, and rest other creditors would get on