IL&FS’s new board moves NCLAT urges it to curb PSB from tagging group firms as wilful defaulters.

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.

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