NEW DELHI: While the beleaguered Infrastructure Leasing and Financial Services Ltd (IL&FS) is considering transfer and sale of assets to bail itself out of debt, the National Company Law Appellate Tribunal (NCLAT) on Friday said the proceedings must be under the supervision of a retired Supreme Court judge.
“As it appears that a process is required to be followed, similar to corporate insolvency resolution process, for the purpose of proper resolution of IL&FS and its subsidiaries,” said a two-judge bench headed by Justice SJ Mukhopadhaya.
The appellate tribunal was hearing a petition filed by the Ministry of Corporate Affairs and IL&FS. On October 15, NCLAT had stayed all proceedings against IL&FS group and its 348 firms till its further order, over an urgent petition moved by the government.
The bench added that in such case, a Committee of Creditors may be required to be formed for determining liability, feasibility and financial matrix for resolution plan for one or other assets. “Appellate Tribunal will suggest to the government and IL&FS to get the matter supervised by a retired SC Judge,” the bench said, also asking IL&FS to submit details of all arbitral proceedings underway against the firm and its 348 subsidiaries.
Infrastructure Leasing & Financial Services Ltd has accumulated a debt of more than I91,000 crore and defaulted on some of its commitments. At present, the newly appointed board is trying to sell off
assets of the group to reduce its debt burden and also to revive the company.