Union of India v. Infrastructure Leasing & Financial Services Ltd. & Ors.

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has been filed by the IL&FS, it has clearly pleaded that as per the revised distribution frame work the interest of all stakeholders including the Provident fund and other trust fund shall be taken into consideration. Recording the aforesaid Reply, we close this Application.

I.A. No. 275 of 2022

This I.A. has been filed by Times Provident Fund Trust making plea for following reliefs:

A. Pass an order directing the Respondent IL&FS Group to pay to the Applicant the amount which is due from IL&FS and IFIN to the Applicant on account of investment by the Applicant in the bonds of the said entities.

B. Pass an order directing the Respondent IL&FS Group to permit the Applicant to be an observing member of the COC of IL&FS as well as IFIN.

C. Pass an order directing the Respondent IL&FS Group to share the minutes of all the COCs that have taken place thus far.

D. Pass an order directing the Respondent IL&FS Group to reply to the letter dated 14.09.2020 issued by the Applicant to the IL&FS Group.

E. Pass an order clarifying the order dated 12.03.2020 in so far as it relates to provident funds, by stating that provident funds are entitled to payment in priority to all other dues. F. Pass any other order in the interest of justice. A Reply has been filed by the IL&FS where it has been pleaded that in view of the revised distribution framework as approved by this tribunal, the steps have been taken and in the final resolution plan the interest of all stakeholders

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including the Appellant shall be taken due care. Ld. Counsel for the Respondent submits that Debenture trustee the Appellant is already a member of CoC. We are of the view that the issue which are sought to be raised in the Application cannot be adjudicated at this stage and when the Resolution plan is submitted for approval, it is always open for all concerned to raise their objection.

I.A. No. 2966 of 2020

Counsel for the Applicant prayed for adjournment for two weeks.

I.A. No. 888 & 889 of 2021

Heard Mr. Ramji Srinivasan Ld. Sr. Counsel for the Applicant. In this Application the Applicant IL&FS Securities Services Ltd. had prayed for direction to restrain the Grievance Redressal Committee ("GRC") from commencing, continuing and disposing off proceedings against the applicant under the extant regulations of Respondent No.1. It is submitted that Grievance Redressal Committee has commenced certain proceedings and issued certain directions also. In the prayer clause of application, Applicant has also prayed for setting aside certain orders including the order dated 23.04.2021, issued by Grievance Redressal Committee with regard to complaints. Ld. Counsel for the Applicant submitted that the Proceedings before Grievance Redressal Committee are judicial proceedings and are clearly covered by the injunction issued by this court on 15.10.2018 and in view of the said injunction the proceedings ought not to have proceeded and this Tribunal may restrain the continuation of such

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proceedings or implementation of the orders. Ld. Counsel for the Applicant has also placed before the court a letter dated 21.07.2022 issued by NSE Clearing Ltd. where the Applicant was advised and requested to adhere to the timelines indicated in the SEBI Circular dated 06.11.2020 for availing the arbitration mechanism and ensure compliance with the provisions of the same. The order dated 15.10.2018 which is relied by the Applicant issues following direction:

"Taking into consideration the nature of the case, larger public interest and economy of the nation and interest of the Company and 348 group companies, there shall be stay of

(i) The institution or continuation of suits or any other proceedings by any party or person of Bank or Company, etc. against IL&FS and its 348 group companies in any Court of Law/Tribunal/Arbitration Panel or Arbitration Panel or Arbitration Authority; and

(ii) Any action by any party or person or Bank or Company, etc. to foreclose, recover or enforce any security interest created over the assets of IL&FS and its 348 group companies including any action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002;

(iii) The acceleration, premature withdrawal or other withdrawal, invocation of any term loan, corporate loan, bridge loan, commercial paper, debentures, fixed deposits, guarantees, letter of support, commitment or comfort and other financial facilities or obligations vailed by IL&FS and its 348 group companies whether in respect of the principal or interest or hedge liability or any other amount contained therein.

(iv) Suspension of temporarily the acceleration of any term loan, corporate loan, bridge loan, commercial paper, debentures, fixed deposits and any other financial facility by the IL&FS and its 348 group companies by any party or person or Bank or Company, etc. as of the date of first default.

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(v) Any and all banks, financial institutions from exercising the right to set off or lien against any amounts lying with any creditor against any dues whether principal or interest or otherwise against the balance lying in any bank accounts and deposits, whether current or savings or otherwise of the IL&FS and its 348 group companies.

The interim order will continue until further orders and not be applicable to any petition under Article 226 of the Constitution of India before any Hon'ble High Court or under any jurisdiction of the Hon'ble Supreme Court."

When we look into the order dated 15.10.2018 it is clear that this tribunal stayed the institution or continuation of the suits or any other proceedings by any party or person or bank or company against IL&FS and its group companies in any Court of law/Tribunal/Arbitration Panel or Arbitration Authority. The above injunction order does not cover the Grievance Redressal Committee. Hence, we are not persuaded to accept the submission of the Counsel for the Applicant that proceedings before Grievance Redressal Committee needs to be stayed or order should be issued for staying implementation of the directions issued by the Grievance Redressal Committee. From the letter dated 21.07.2022 which has been placed by the Counsel for the Applicant himself, it is clear that under the SEBI Circular the Applicant if aggrieved has to avail the arbitration mechanism. We, thus, are of the view that prayers made in the application cannot be granted. The application is rejected.

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I.A. No. 544 of 2022

In view of our order of the date passed in I.A. No. 888 & 889 of 2021, no separate order need to be paved in this application. The application is disposed of.

I.A. Nos. 296, 427, 429, 557, 586, 645 of 2022

List these I.A.'s along with CA (AT) No. 347 of 2018 and 120 of 2021 on

27.09.2022.

I.A. No. 1709 of 2022

I.A. No. 1709 of 2022 be also listed on 27.09.2022. Reply to the application may also be filed within two weeks.

[Justice Ashok Bhushan] Chairperson

[Dr. Alok Srivastava] Member (Technical) [Ms. Shreesha Merla] Member (Technical)

sr/nn