NCLAT Asks IL&FS To Complete Resolution By Mar 31, 2025

New Delhi: The Insolvency appellate tribunal has directed the debt-ridden IL&FS group to complete the resolution of the remaining 58 firms by March 31, 2025 and has extended the moratorium until the date.

A two-member bench observed that the resolution process for the remaining 58 entities is at an advanced stage and “considerable progress has been made by IL&FS (Infrastructure Leasing and Financial Services), which is pairing debts through asset resolution and other mechanisms. “We, thus, for the time being, are of the view that a direction needs to be issued to IL&FS and a new board to complete the resolution process of 58 entities as captured in paragraph 24 of the affidavit by March 31, 2025,” said NCLAT in an order passed on Tuesday.

NCLAT also directed IL&FS to take “appropriate steps” before the National Company Law Tribunal (NCLT) to close the process. Earlier, on August 28, 2024, the National Company Law Appellate Tribunal (NCLAT) questioned the continuation of the moratorium for the IL&FS entities and observed that “the protection under order dated October 15, 2018, cannot be allowed to continue for all time to come.”