NCLAT Gives Nod To RBI Plea In IL&FS Case

The National Company Law Appellate Tribunal (NCLAT) has accepted the RBI’s impleadment request as a “party respondent” in the appeal filed by the Centre against NCLT’s historic February 25 order in the IL&FS case.

As the regulatory authority overseeing banks and non-banking finance companies, the central bank had submitted to NCLAT that it was interested in the outcome of the appeal filed by the Centre in the IL&FS case.

RBI’s request for impleadment as a respondent party was accepted at NCLAT hearing on Tuesday, and the next date of hearing is now proposed for March 29, said sources close to the development.

It may be recalled that NCLT, by its orders dated October 15, 2018, February 11, 2019, and February 25, 2019, had passed various directions, including direction to all banks and financial institutions not to declare the accounts of Infrastructure Leasing & Financial Services Limited (IL&FS) or its entities as non-performing assets.

In its application for impleadment, the RBI has submitted that if the banks and financial institutions implement the orders of NCLT, it would lead to a situation where the statutory instructions/guidelines/circulars issued by the RBI would become “infructuous”.