Court Approves Justice D.K. Jain to Supervise IL&FS Resolution

Various intervention applications were allowed by the court, representing different creditors. The appointment of Hon'ble Justice (Retd.) D.K. Jain to supervise the resolution process of the IL&FS Group Companies was approved. Offshore Group Entities were excluded from the interim order, with their resolution supervised by Justice Jain. Domestic Group Entities were classified into Green, Amber, and Red categories based on their financial status. Green Entities were permitted to service their debt obligations under the resolution framework. Future resolution plans for Amber and Red Entities were to be discussed, addressing concerns about lenders' actions affecting essential payments for the companies. Further proceedings were scheduled for orders on 12th March 2019 to ensure efficient resolution within a specified timeframe.

---

---

Issues:
- Intervention applications by various parties
- Appointment of Hon'ble Justice (Retd.) D.K. Jain to supervise the IL&FS Group Companies' resolution process
- Exclusion of Offshore Group Entities from the interim order
- Classification of Domestic Group Entities into Green, Amber, and Red Entities
- Resolution framework for Green Entities
- Payment obligations for Amber and Red Entities
- Future resolution plans for Amber and Red Group Entities
- Concerns regarding lenders' actions affecting IL&FS Group Companies

Intervention Applications:
The judgment allowed intervention applications by various counsels representing Financial Creditors, Operational Creditors, and other secured creditors. Parties intending to file impleadment applications were directed to do so before the next date.

Appointment of Hon'ble Justice (Retd.) D.K. Jain:
The Union of India sought the supervision of Hon'ble Justice (Retd.) D.K. Jain to oversee the resolution process of the IL&FS Group Companies. After consent from Justice Jain, terms and conditions of engagement were discussed and filed in an affidavit.

Exclusion of Offshore Group Entities:
The judgment excluded 133 Offshore Group Entities from the interim order, allowing their resolution under the supervision of Justice Jain and subject to the decision of the Board of Directors.

Classification of Domestic Group Entities:
The Union of India classified 169 Indian IL&FS Group Entities into Green, Amber, and Red Entities based on their financial status and ability to meet payment obligations.

Resolution Framework for Green Entities:
The Board of Directors of IL&FS was permitted to allow Green Entities to service their debt obligations as per scheduled repayment within the Resolution Framework under Justice Jain's supervision.

Payment Obligations for Amber and Red Entities:
Prayers were made to permit necessary payments for Amber and Red Entities to maintain them as Going Concern. Concerns and objections were raised by various parties regarding these entities.

Future Resolution Plans:
The judgment intended to hear the matter concerning Amber and Red Group Entities on the next date, seeking resolution plans from the Union of India and IL&FS on constituting a Committee of Creditors and providing a timeframe for resolution.

Concerns Regarding Lenders' Actions:
Issues were raised regarding lenders marking lien on monies affecting essential payments for IL&FS Group Companies. The judgment indicated a potential order if lenders fail to release necessary payments.

Conclusion:
The judgment scheduled further proceedings for orders on 12th March 2019, emphasizing the importance of resolving the entities efficiently within a specified timeframe to avoid prolonged interim orders.

---