NCLAT dismisses HDFC’s plea to stay sale of BKC headquarters to IL&FS

National Company Law Appellate Tribunal (NCLAT)NCLATrejected Housing Development Finance Corporation ,HDFCappeals to stay the sale of IL&FS headquarters in Mumbai Bandra Kurla Complex for one brookfield affiliate, two sources told ET.

A two-judge bench of Justices Ashok Bhushan and Dr Alok Srivastava, in an order dated February 28, dismissed the appeal of the leading mortgage-finance lender.

HDFC In 2018, a loan of Rs 400 crore was sanctioned to IL&FS as a lease rental discounting transaction. The facility was to be repaid from the cash flows generated by IL&FS from the use of the asset being let out.

However, the National Company Law Tribunal initiated corporate insolvency proceedings which prevented the recovery, foreclosure or enforcement of any security. IL&FS had initiated the sale process of the said property in October 2020.

In January 2022, the decision to sell assets for Rs 1,080 crore to the crisis-hit infrastructure financier was voted by 74% of creditors.