The Nationwide Firm Regulation Appellate Tribunal (NCLAT) on Friday allowed Canara Financial institution and Indian Financial institution to proceed with proceedings to declare former administrators of Infrastructure Leasing & Monetary Companies (IL&FS) who aren’t a part of the brand new board of IL&FS as “wilful defaulters”.
The brand new board appointed by the federal government took over IL&FS on October 1, 2018.
The appellate tribunal stated: “Sure skilled administrators who had been earlier the administrators of the corporate have been reappointed within the board. We’re of the view that this safety shall prolong solely to skilled administrators who’ve been reappointed and at current a part of the brand new board.”
The NCLAT had in March final yr restrained the Reserve Financial institution of India and lenders from initiating or pursuing any proceedings to declare IL&FS, its subsidiaries and administrators as wilful defaulters.