New Delhi : Insolvency regulator tribunal NCLAT has given permission to sell debt-ridden IL&FS Group's subsidiary IL&FS Paradip Refinery Water Limited or IPRWL to the successful bidder.

According to reports, it is being said that this can help IL&FS in repaying the loan of about Rs 1,000 crore. IPRWL was set up to meet the water needs of the 15 million tonne per annum capacity Paradip Refinery Project being developed by IOC in Odisha.

acquire shareholding

IL&FS is reducing its debt by selling assets and had not received consent from IOC to sell its stake in IPRWL. In such a situation, IL&FS had appealed to the National Company Law Appellate Tribunal (NCLAT), which is monitoring the process, for help, so that IOCL could be directed to acquire 100 percent shareholding in IPRWL at an appropriate valuation or allow it to be sold.

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Must have technical knowledge

After hearing the arguments of both the parties, NCLAT has said that IOC has not given consent for 100 percent acquisition of the shareholding, hence we are of the view that ILF&S should be allowed to sell it to the successful bidder as per the procedure laid down under the resolution structure. Should go. However, NCLAT made it clear in its order that the successful unit should have the necessary technical knowledge to take the project forward.

What is NCLT?

The National Company Law Tribunal or NCLT is a quasi-judicial body in India that decides on issues to Indian companies. The tribunal established under the Companies Act 2013 was constituted by the Government of India on 1 June 2016 and is based on the recommendation of the V. Balakrishna Eradi Committee on the Law Relating to Insolvency and Winding Up of Companies. All proceedings under the Companies Act, including proceedings relating to arbitration, compromise, arrangement, reconstruction and winding up of companies, must be before the National Company Law Tribunal i.e. NCLT. The NCLT bench is headed by a judicial member, who must be a serving or retired high court judge.