Syllabus: GS-III Subject: Economy(E) Topic: Banking and Financial Intermediaries, Issue: NCLAT.
Context: IL&FS’s new board seeks NCLAT intervention to prevent 11 public sector banks from declaring group firms as “wilful defaulters.”
Key Issues:
- IL&FS alleges banks of violating orders, and harassing directors;
- Urges NCLAT to restrain coercive actions, and safeguard interests during resolution.
Prelims Connect (Institutions in news)
| NCLAT(National Company Law Appellate Tribunal) :
● Established in 2016 under the Companies Act, ● Functions: Reviewing appeals on ● NCLT decisions under the Insolvency and Bankruptcy Code (IBC), ● Insolvency and Bankruptcy Board of India decisions ● Competition Commission of India (CCI). ● It ensures timely disposal of appeals, typically within six months. |
