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ILFS Board permitted asset sale with salary protection; Justice D.K. Jain supervises. Compliance and requests mandated. The Tribunal granted permission to the ILFS Board of Directors for the sale or transfer of movable assets of Red Entities under the supervision of Hon'ble ...
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ILFS Board permitted asset sale with salary protection; Justice D.K. Jain supervises. Compliance and requests mandated.
The Tribunal granted permission to the ILFS Board of Directors for the sale or transfer of movable assets of Red Entities under the supervision of Hon'ble Justice Shri D.K. Jain. It clarified that the Interim Order should not impede the payment of salaries to employees and creditors. The judgment also allowed ILFS to present their requests before Hon'ble Justice Shri D.K. Jain and mandated organizations to respond to notices from him. Additionally, the Tribunal disposed of specific applications filed in the case, requiring compliance with the judgment's directives for further actions.
Issues: 1. Permission for sale or alienation of movable properties of Red Entities by ILFS Board of Directors. 2. Payment of salaries to employees, workmen, officers, and operational creditors of Red Entities. 3. Liberty granted to ILFS/Board of Directors to bring prayer before Hon'ble Justice Shri D.K. Jain. 4. Disposal of I.A. No. 2009, 2010, 2011 & 2012 of 2019.
Analysis:
1. The judgment addresses the issue of permission for the sale or alienation of movable properties of Red Entities by the ILFS Board of Directors. The counsel for ILFS requested permission for the sale or transfer of movable assets of 82 Red Entities to maintain them as a going concern. The Tribunal allowed this request, stating that if any movable asset needs to be sold or transferred, the Board of Directors must seek permission from Hon'ble Justice Shri D.K. Jain, a former Judge of the Supreme Court. The Tribunal clarified that the Interim Order from a previous date would not hinder the Red Entities from paying salaries to employees, workmen, officers, and operational creditors to ensure the continuity of their operations.
2. Regarding the payment of salaries to employees, workmen, officers, and operational creditors of the Red Entities, the Tribunal emphasized that the Interim Order would not obstruct the Red Entities from fulfilling these financial obligations. This directive aims to maintain the functioning of the Red Entities and ensure the timely payment of dues to employees and creditors.
3. The judgment grants liberty to ILFS/Board of Directors to present their prayer before Hon'ble Justice Shri D.K. Jain. This provision allows ILFS to bring their concerns or requests before the designated authority for further consideration and appropriate action. Additionally, the Tribunal mandated that any organization, including ONGC, must respond to notices from Hon'ble Justice Shri D.K. Jain to avoid disobedience of the Tribunal's order.
4. Finally, the judgment concludes by disposing of I.A. No. 2009, 2010, 2011 & 2012 of 2019. This disposal indicates that the specific applications filed in this regard have been addressed, and any further actions related to these applications should comply with the directives provided in the judgment.
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