NCLAT dismisses HDFC's appeal against sale of IL&FS BKC property
Real Estate

NCLAT dismisses HDFC's appeal against sale of IL&FS BKC property

The National Company Law Appellate Tribunal (NCLAT) has dismissed the plea of HDFC to stay the sale of IL&FS headquarters in Mumbai's Bandra Kurla Complex (BKC) to Brookfield Asset Management. A two-member bench of the NCLAT said the sale of the property is as per the revised resolution framework approved by the appellate tribunal in March 2020 and it cannot operate as any fetter to proceed with the approval of the proposal.

Housing Development Finance Corporation Ltd had made an offer to sanction a loan of Rs 4 billion to IL&FS as a lease rental discounting transaction.

The repayment of the said facility was to be from the cash flows generated from the use of the TIFC property being let out by Infrastructure Leasing & Financial Services Ltd whose cash flows were assigned in favour of HDFC.

Yet as part of its strategy to cut debt, the newly in charge of the indebted IL&FS chose to sell the property.

On September 23, 2022, it also received approval from the adjudicating body in accordance with the established method.

HDFC contested this, claiming that the order was issued on September 23, 2022, in contravention of the rules of natural justice, by the adjudicating authority.

"... we, thus, are of the view that no grounds have been made out to interfere with the order passed by the adjudicating authority dated September 23, 2022," the NCLAT said.

"No relief can also be granted in... as on date, the same stands rejected," the NCLAT bench comprising Chairperson Justice Ashok Bhushan and Alok Srivastava said.

See also:
63 Moons' plea: NCLAT issues notice to DHFL, Piramal, and CoC
NCLAT grants extension of 90 days for HDIL insolvency process

The National Company Law Appellate Tribunal (NCLAT) has dismissed the plea of HDFC to stay the sale of IL&FS headquarters in Mumbai's Bandra Kurla Complex (BKC) to Brookfield Asset Management. A two-member bench of the NCLAT said the sale of the property is as per the revised resolution framework approved by the appellate tribunal in March 2020 and it cannot operate as any fetter to proceed with the approval of the proposal. Housing Development Finance Corporation Ltd had made an offer to sanction a loan of Rs 4 billion to IL&FS as a lease rental discounting transaction. The repayment of the said facility was to be from the cash flows generated from the use of the TIFC property being let out by Infrastructure Leasing & Financial Services Ltd whose cash flows were assigned in favour of HDFC. Yet as part of its strategy to cut debt, the newly in charge of the indebted IL&FS chose to sell the property. On September 23, 2022, it also received approval from the adjudicating body in accordance with the established method. HDFC contested this, claiming that the order was issued on September 23, 2022, in contravention of the rules of natural justice, by the adjudicating authority. ... we, thus, are of the view that no grounds have been made out to interfere with the order passed by the adjudicating authority dated September 23, 2022, the NCLAT said. No relief can also be granted in... as on date, the same stands rejected, the NCLAT bench comprising Chairperson Justice Ashok Bhushan and Alok Srivastava said. See also: 63 Moons' plea: NCLAT issues notice to DHFL, Piramal, and CoCNCLAT grants extension of 90 days for HDIL insolvency process

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Sabarmati Riverfront Two Plots Up for Auction at Rs2.24 bn Base Price

Two commercial plots on the western bank of the Sabarmati Riverfront will be auctioned with a base price of Rs 112 crore each, equivalent to Rs 1.12 bn apiece and Rs 2.24 billion in total. The parcels are located adjacent to the Metro Rail Bridge in Ahmedabad and form the first commercial offering after a prolonged pause. The Riverfront Development Corporation has framed the sale as part of a phased commercial release to revive development along the riverfront. The combined base valuation has been set by the corporation to reflect market rates along the riverfront. The corporation has fixed a ..

Next Story
Infrastructure Urban

Andhra Pradesh to Connect Over One Million Streetlights

Andhra Pradesh will undertake a statewide smart streetlighting programme across all 123 Urban Local Bodies (ULBs), bringing around 1.05 million (mn) streetlights under an AI enabled monitoring and management system. The programme will be implemented by Energy Efficiency Services Limited (EESL) with the Commissioner and Director of Municipal Administration under the state Municipal Administration and Urban Development Department. The project aims to convert conventional streetlighting into a digitally managed municipal service monitored and maintained remotely. The initial phase will cover abou..

Next Story
Infrastructure Urban

AMC To Procure Four Machines For Guard Rail Cleaning

Ahmedabad Municipal Corporation will introduce four specialised machines for cleaning guard railings along major roads and the central verges of BRTS and Metro corridors. The civic body plans to replace manual labour with mechanised cleaning to improve maintenance of road infrastructure and greenery. The purchase is estimated at Rs 82.8 million (mn), excluding GST. The proposal sets the base price of each machine at about Rs 20.7 million (mn) so four units total Rs 82.8 million (mn) before GST. 18 per cent GST will be applicable separately. During the warranty period each machine will operate ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement