38.6c New Delhi, India, Friday, March 29, 2024
Business

IL&FS toInitiate bankruptcy proceeding against two offshore firms at UAE

By Aditya Suresh Kale      07 September, 2020 07:10 PM      0 Comments
IL&FS toInitiate bankruptcy proceeding against two offshore firms at UAE

IL&FS has proposed to initiate the proceedings of bankruptcy for two of its offshore firms named as ITNL Infrastructure Developers LLC (IIDL) and ITNL International DMCC (IIDMCC) - in the courts of the UAE.

It has requested the National Company Law Tribunal (NCLT), Mumbai being to take on record of its proposal to initiate the bankruptcy proceedings before the Dubai Courts under UAE Federal Decree.

The tribunal had given its consent to the decision of the board which is newly constituted by the IL&FS and observed that the initiation of bankruptcy proceedings has been found to be the best option for the respective two firms.

"After hearing both the sides and on perusal of records, this bench is of the view that the initiation of bankruptcy proceedings is the best option in the given scenario. The same is recorded as prayed for. In the circumstances, the proposal of the applicant for initiation of insolvency proceedings of IIDL and IIDMCC is taken on record," the NCLT said.

The tribunal also provided its observance that the Regional Director (WR), MCA, Mumbai representing the government has also don’t have any objection.

"There is no objection from the Petitioner (MCA) for the proposal of the Applicant," it said.

Justice D K Jain, who is supervising the assets, has already accorded his approval for the initiation of bankruptcy proceedings for both - IIDMCC and IIDL - in May this year.

National Company Law Appellate Tribunal (NCLAT) through its order on February 11, 2019, provided the roadmap for IL&FS, the offshore entities of the group have been exempted from the resolution framework.

The board decides on the resolution of the offshore entities under the supervision of Justice D K Jain, appointed by the NCLAT to conduct the asset resolution of the company.

It has to inform the NCLT only about the actions taken for the resolution of offshore IL&FS Group Entities which places it in on the record, unlike the domestic entities, whose sale has to be approved by the tribunal.

IIDMCC is a wholly-owned subsidiary of ITNL International Pvt. Limited (IIPL), which is a step-down firm of IL&FS Transportation Networks Ltd (ITNL). IL&FS holds around 73% in ITNL.

IIPL holds 49% shareholding in IIDL and the balance 51% is held by one MAK Holdings LLC. IIDL was incorporated for implementing Transport Infrastructure Projects in UAE on public-private partnership (PPP), and it also includes a car park project.

IIDMCC was incorporated for providing support services to ITNL offices globally and for implementing transport infrastructure PPP projects in the Middle East/Africa.

IL&FS had earlier recommended divestment of IIPL's stake in IIDL, however, the said proposal could not be carried out successfully and the negotiations with the investors failed.

Moreover, on account of default on the part of IIDL to discharge its financial obligations, the Dubai Courts had on October 7, 2019, issued the default notice to IIDL.

The outstanding liabilities of IIDL as on December 31, 2019, stands at 59.60 lakh AED (United Arab Emirates Dirham), which mostly comprise of unpaid salaries of employees, service benefits, and vendors payments.

The liability of IIDMCC is 30.08 lakh AED and has virtually no assets.



Share this article:



Leave a feedback about this
TRENDING NEWS

arvind-kejriwals-plea-for-interim-release-rejected-by-delhi-high-court
Trending Judiciary
Arvind Kejriwal's plea for interim release rejected by Delhi High Court [Read Order]

Delhi High Court rejects Arvind Kejriwal's plea for interim release in money laundering case related to liquor policy scam, pending ED's response.

28 March, 2024 10:50 AM
youtuber-strings-plea-against-youtube-accounts-suspension-andhra-pradesh-hc-issues-notice-to-centre-google
Trending Top Stories
BREAKING: Youtuber String’s plea against Youtube accounts suspension: Andhra Pradesh HC issues notice to Centre, Google

Andhra Pradesh High Court issues notice to the Centre and Google LLC on Youtube journalist String’s plea against suspension of its accounts by Google (which owns Youtube).

28 March, 2024 11:26 AM

TOP STORIES

delhi-liquor-scam-court-remands-arvind-kejriwal-to-ed-custody-till-march-28-read-remand-application
Trending Judiciary
Delhi liquor scam: Court remands Arvind Kejriwal to ED custody till March 28 [Read Order]

Delhi liquor scam: Arvind Kejriwal remanded to ED custody till March 28. Court grants agency permission for interrogation in liquor policy case.

23 March, 2024 11:53 AM
sc-dismisses-centres-plea-for-review-of-judgment-directing-ed-to-furnish-written-grounds-of-arrest-to-pmla-accused
Trending Judiciary
SC dismisses Centre’s plea for review of judgment directing ED to furnish written grounds of arrest to PMLA accused [Read Order]

Supreme Court dismisses Centre's plea, upholds judgment mandating Enforcement Directorate to provide written grounds of arrest in PMLA cases.

23 March, 2024 03:14 PM
kerala-hc-to-hear-lesbian-couples-plea-against-forced-conversion-therapy-on-april-9
Trending Judiciary
Kerala HC to hear lesbian couple’s plea against forced conversion therapy on April 9

Kerala HC will hear a lesbian couple’s plea highlighting that one of them was subjected to forced conversion therapy.

23 March, 2024 03:30 PM
how-can-people-be-compelled-to-vote-madras-hc-asks
Trending Judiciary
“How can people be compelled to vote? Madras HC asks

“How can people be compelled to vote?”, the Madras HC queried in a plea asking employers in Tamil Nadu to demand proof from employees of having voted on polling day.

23 March, 2024 05:04 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email