No bank or financial institution can declare the accounts of debt-ridden IL&FS and its group companies as non-performing assets without the NCLAT’s permission, the appellate tribunal said Monday.
A two-member National Company Law Appellate Tribunal (NCLAT) Bench, headed by Chairman Justice S J Mukhopadhaya, said that this is done in the interest of the IL&FS debt resolution plan.
“No IL&FS or its subsidiaries’ account to be declared an NPA by any financial institution without approval from the NCLAT,” the appellate tribunal said. The tribunal’s direction came during the hearing over the government’s plan for the resolution of IL&FS group companies.
