NCLAT Reviews Multiple Interloqutory Applications in IL&FS Linked Applications [Read Order]

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, heard a series of interim applications in the matter involving Infrastructure Leasing and Financial Services Ltd. (IL&FS) and the Union of India, with several directions passed and matters listed for hearing in July.

The case, registered under Company Appeal (AT) Nos. 346 and 347 of 2018, continues to see active intervention from a wide range of stakeholders including central and state authorities, financial institutions, and corporate entities. Multiple interlocutory applications were taken up, with the Tribunal passing procedural directions and scheduling key matters for July 21, 2025.

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In IA No. 5036 of 2023, the Tribunal acceded to the request of counsel and listed the matter for further hearing on May 21, 2025. Meanwhile, in IAs No. 2301, 5031, and 5033 of 2023, appellants submitted that while a settlement offer was received from IL&FS, no discussion or meeting was held. Counsel representing IL&FS, assured the bench that formal communication for meetings would be issued. These applications will now be heard on May 23, 2025.

The Appellate Tribunal also took note of IA No. 6867 of 2024, where IL&FS sought directions to release funds for going concern expenses of MP Border Check Post Development Company Ltd. It was submitted that prior to termination of the contract by MPRTCL, several operational expenses had been incurred. Authorised Representative of Canara Bank, informed the Tribunal that ₹92.27 crore had been approved for release within two weeks. The amount was accepted by IL&FS without prejudice to its rights. The matter will be heard further on July 21, 2025, along with IAs 8399 and 8402 of 2024.

IA Nos. 1913 and 5868 of 2024 filed by Indian Bank sought interim distribution of Phase-II lender funds. IL&FS was directed to clarify whether any board decision has been taken regarding this matter on the next date of hearing.

In IA No. 2495 of 2025, filed by RIDCOR seeking refund of excess amount, notice was issued and the Tribunal directed the respondent to file a reply within three weeks. IA No. 2587 of 2025, filed by Barclays Bank PLC, sought disbursal of ₹16.25 crore allegedly missed during earlier interim distribution. IL&FS submitted that the amount had already been released along with additional sums, and that communication in this regard was sent on May 5, 2025. The Tribunal, noting this, disposed of the application while allowing the applicant to seek further details, if required.

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Additional directions were issued for replies in various matters concerning Indian Bank, Employees Provident FundOrganisation, CSR issues, and state-level claims from the Government of Rajasthan.

The Tribunal scheduled over 20 applications for further hearing on July 21, 2025, at 2:00 PM, indicating that important clarity on interim distributions, settlements, and operational expenses is expected in the upcoming sessions.

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