Insolvency resolution Framework for IL & FS proposed by the Government cleared by the NCLAT

The National Company Law Appellate Tribunal (NCLAT) approved the resolution framework proposed by the Government on 12^th March, 2020 in the final judgement on the insolvency proceedings against Infrastructure Leasing & Financial Services (ILFS). The money invested in IL&FS by the Life Insurance Corporation of India, State Bank of India, Central Bank of India and IL&FS Employees Welfare Trust, amongst others constituted public money, and hence the distribution framework under the Insolvency and Bankruptcy Code, 2016 should not be followed. A time limit of 90 days has been set for the resolution process, the NCLAT said that, “ The Union of India (UOI), the board of directors of IL&FS and the Committee of Creditors (CoCs) which are already constituted, or may be constituted, are directed to conclude the resolution of all entities preferably within 90 days”.