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

The National Company Law Appellate Tribunal (NCLAT) has rejected HDFC's plea to hold the sale of the IL & FS headquarters at the Bandra Kurla Complex (BKC) in Mumbai to Brookfield Asset Management. A two-member NCLAT court said the sale of the property is under the revised resolution framework approved by the appeals court in March 2020 and that it cannot act as a penalty to proceed with the approval of the proposal.

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

The repayment of this facility was to be paid from the cash flows generated by the use of the TIFC property leased by Infrastructure Leasing & Financial Services Ltd, whose cash flows were allocated in favour of HDFC.

But as part of his debt reduction strategy, the newly charged IL & FS chose to sell the property.

On September 23, 2022, it also received approval from the jury according to the established method.

HDFC disputed this, claiming that the order was issued by the judicial authority on September 23, 2022, in violation of the rules of natural justice.

"There can also be no exemption in. as on date, the same views rejected," said the NCLAT bank consisting of chairman Justice Ashok Bhushan and Alok Srivastava.