The National Company Law Appellate Tribunal (NCLAT) on Friday said pension and provident funds which had invested in Infrastructure Leasing & Financial Services (IL&FS) would have priority in payment from all categories of companies, whether classified as green, amber or red. While the companies classified under the green category by the new board of IL&FS have been allowed to service their debt to all secured and unsecured creditors, those under amber category had been allowed to service debts of only senior secured creditors.
During the last hearing on May 30, the NCLAT had said that if IL&FS companies under the amber category were not reclassified into the green category, the appellate tribunal will pass orders asking such companies to service 100 per cent debt obligations of the provident and pension funds.
