NCLAT orders lifting of lien on assets of IL&FS Transportation

15 May 2024 , 12:40 PM

In contrast to its earlier ruling, the National Company Law Appellate Tribunal on Tuesday ordered the lifting of IL&FS Transportation Networks Limited’s (ITNL) lien, rejecting the Maharashtra tax department’s attachment of the account and creation of a lien.

In October 2018, the NCLAT issued an order stating that recovery actions against IL&FS or its subsidiaries cannot be started by authorities. The injunction from October 2018 forbids “the institution or continuation of suits or any other proceedings by any party or person or Bank or Company, etc. against ‘IL&FS’ and its 348 group companies in any Court of Law/Tribunal/Arbitration Panel or Arbitration Authority.”

About ₹12 Crore is left in ITNL’s bank account, and Punjab & National Bank applied to the NCLAT to request an interim distribution of the funds to settle its debt. Following this order, the IL&FS board may now discuss allocating money from the PNB account to PNB’s debt.

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