Therefore, “the very foundation of issuing of letter dated 12.09.2023, rejecting the declare of IFIN is knocked out”, mentioned a two-member bench of the NCLAT which additionally consisted of Chairperson Justice Ashok Bhushan and Member (Technical) Barun Mitra.
“The letter dated 12.09.2023, issued by IRP is put aside. The declare of IFIN as admitted within the CIRP and voting share of 39.14% is restored within the CIRP of Attivo Financial Zone (Mumbai) Pvt. Ltd,” mentioned NCLAT
IFIN had filed a declare of about Rs 593 crore and the IRP of Attivo Financial Zone admitted it and allotted share of 39.14 per cent within the lenders’ physique Committee of Collectors (CoC).
Nonetheless, on September 12, 2023, IRP issued a letter rejecting IFIN’s declare as a monetary creditor of the Attivo Financial Zone. After rejection, SIFL turned the only real member of the CoC with 100 per cent votes and likewise handed the decision for liquidation. This was challenged by IFIN, a 100 per cent subsidiary of Infrastructure Leasing and Monetary Providers Restricted (IL&FS), earlier than NCLAT. In his reply, IRP mentioned that IFIN’s declare has been rejected primarily based on the pleadings made by the IL&FS itself in one other petition, the place the IL&FS itself has pleaded that the transaction with Attivo was circuitous.
IFIN had disbursed Rs 305 crore to Attivo by the use of two time period mortgage agreements in 2017 and 2018, and the borrower defaulted on reimbursement.
Following this, IFIN had moved a plea to provoke insolvency proceedings in opposition to Attivo earlier than the Kolkata bench of the Nationwide Firm Legislation Tribunal (NCLT), which on June 9, 2023, admitted it and appointed an IRP suspending the board.
Within the first CoC assembly on July 7, 2023, the place the conversion of the IRP to RP was put to vote, IFIN voted in opposition to it, failing to get a majority vote in its favour.
In the mean time, to discover a resolution to the varied complexities arising out of the mortgage transactions undertaken by IFIN and a few third-party debtors together with Attivo, the newly appointed board of IL&FS fashioned after the disaster took a choice to break down (unwind) such transactions.
In pursuance of the identical, IL&FS approached NCLAT with an utility looking for approval to break down sure transactions entered into by IFIN, together with the transaction with Attivo and take obligatory actions together with obligatory accounting entries within the books of the events.
Contemplating that the result of the collapsing utility would have a cloth affect on the CIRP of Attivo, IFIN vide letter dated August 17, 2023, inter alia knowledgeable the IRP concerning the mentioned utility and requested it to maintain voting within the CoC in abeyance until such time it’s adjudicated upon.
Nonetheless, primarily based on the collapsing utility, IRP rejected IFIN’s declare and ousted it from the CoC.
