RBI seeks modification of NCLAT order in IL&FS case

Industry:    2019-03-20

The Reserve Bank of India has moved the National Company Law Appellate Tribunal (NCLAT) over the latter’s order regarding classification of debt of IL&FS group companies as non-performing assets (NPAs).

A two-member NCLAT bench, headed by Justice S.J. Mukhopadhaya, had said it would hear the Reserve Bank of India (RBI) on the issue.

The RBI is seeking modification of the order passed by the tribunal, which had provided a moratorium on repayment of loans regarding the accounts of IL&FS and its over 300 group companies.

During the proceedings, RBI’s counsel said there was a overlap of power on the issue.

The tribunal had also asked the Ministry of Corporate Affairs about the progress made with respect to resolution of IL&FS issues.

Further, the tribunal also sought company-wise updates from the Committee of Creditors (CoC) and Resolution Professional (RP).

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