NCLAT adjourns IL&FS case hearing to April 29

The National Company Law Appellate Tribunal (NCLAT) on Tuesday adjourned to April 29 the hearing on the matter of the debt-ridden Infrastructure Leasing and Financial Services (IL&FS). During the hearing, the tribunal observed that IL&FS should distribute funds to smaller creditors, including the investments made by provident funds (PF) and pension funds, in a manner that 80 per cent of their entitled amounts are paid. The Reserve Bank of India (RBI) counsel Gopal Jain said at the hearing that banks` non-performing assets (NPAs or bad loans) should reflect in the books of the banks.

The NCLAT had, in February, ordered that no financial institution would declare any account of the IL&FS group entities as an NPA without the tribunal`s prior permission. Last month, the RBI moved the appellate tribunal against its February order.