NCLAT reserves order on SBI's request for cash from IL&FS Co.

9 Aug 2024 , 09:01 AM

On Thursday, the National Company Law Appellate Tribunal (NCLAT) reserved its decision on State Bank of India’s application for an interim distribution of ₹275 crore from an escrow account of Baleshwar Kharagpur Motorway Ltd (BKEL), an entity of the Infrastructure Leasing & Financial Services (IL&FS) group.

“The amount lying with BKEL is in surplus of ₹330 crore,” SBI’s counsel said the NCLAT, pointing out that the corporation sought an interim distribution of money in December last year. The proposal called for a ₹204 crore dividend, half of which would be split between the National Highways Authority of India (NHAI) and SBI. However, the state-run bank had wanted ₹275 crore.

SBI’s attorney stated to ET that it had been nearly six years and the secured creditors had yet to receive the funds.

In April of this year, the NCLAT ruled that because secured creditors such as SBI were higher in the hierarchy of money distribution, their debt should be paid before other payments, including NHAI’s.

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