Team Blitz India
NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) has directed 11 public sector lenders (PSLs) not to take coercive action against IL&FS and its group companies till its next hearing on May 14.
A two-member NCLAT bench headed by Chairperson Justice Ashok Bhushan also issued notices to the banks, along with the Reserve Bank of India (RBI), directing them to file a reply.
“In view of the order dated October 15, 2018, the Respondents (banks) shall not proceed to take any coercive action against the Applicant (IL&FS and group companies) till the next date,” said the NCLAT.
On October 15, 2018, the NCLAT stayed all proceedings against IL&FS and other group companies till its further order. It had also restrained creditors of IL&FS from filing suits, in the case of non-repayment of loans.
The NCLAT direction came over an urgent plea moved by the newly appointed board of debt-ridden IL&FS, seeking direction to the banks restraining them from initiating or pursuing any proceedings for declaration as willful defaulter against its group companies and their officials.
