The National Company Law Appellate Tribunal (NCLAT) has expressed its displeasure over the slow progress by the government and IL&FS in the resolution of the debt-ridden companies of the group. The tribunal directed the Corporate Affairs Ministry and IL&FS group to file a fresh progress report by September 3 ahead of the next hearing on September 5.
A two-member bench headed by Chairman Justice S J Mukhopadhaya said that around 300 days have been passed and there is hardly any progress in the resolution process of IL&FS group companies.
“They will keep it in mind that already 300 days approximately have completed since the Interim Order was passed on 15th October 2018,” the bench said.
“The Union of India/ILFS are directed to file a fresh Progress Report by September 3, 2019,” said the appellate tribunal.
Under the Insolvency & Bankruptcy Code, a corporate insolvency resolution process has to be completed under 270 days and failing to the timeline, the company goes for liquidation.
“What is going on, I want a reply on this,” the bench said.
The NCLAT listed the matter on September 5 for the next hearing.
The tribunal also pulled up the Government for not filing the status of 82 Red category companies of IL&FS and has directed it to file by tomorrow.
“In spite of our order dated July 12, 2019, no Progress Report has been filed by Union of India/ILFS. They are allowed to file the Progress Report by tomorrow,” said NCLAT.
It has also directed the MCA to pass a final order and settle the claims of three amber category entities, which were upgraded into the green after signing terms sheets with their lenders.
“We make it clear that before the next date of hearing, the Union of India must pass final order and settle the claim of all the creditors with regard to three Amber/Green Entities viz. Moradabad Bareilly Expressway, Jharkhand Road Projects Implementation Company and West Gujarat Expressway as per signed Term Sheet,” said NCLAT.