Tribunal categorizes JIICL and JRPICL as "Green" entities with conditions.

The Tribunal allowed the Interlocutory Application, determining that Jharkhand Infrastructure Implementation Company Ltd. (JIICL) and Jharkhand Road Projects Implementation Company Limited (JRPICL) should both be categorized as "Green" entities. This decision was subject to conditions such as waivers and interest rate renegotiation for JIICL, and the possibility of re-categorization for JRPICL if financial liabilities from arbitral awards impact its ability to fulfill obligations.

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Issues Involved:
1. Re-categorization of Jharkhand Infrastructure Implementation Company Ltd. (JIICL) from "Green" to "Red".
2. Re-categorization of Jharkhand Road Projects Implementation Company Limited (JRPICL) from "Green" to "Red".

Summary:

Issue 1: Re-categorization of JIICL from "Green" to "Red"

Interlocutory Application No.1709 of 2022 was filed by Punjab National Bank and Indian Bank, objecting to the re-categorization of JIICL from a "Green" entity to a "Red" entity. The categorization of IL&FS Group Entities, including JIICL, was initially recorded in the Tribunal's orders dated 11.02.2019 and 19.09.2019, where JIICL was categorized as "Green". Respondent No.1 filed an affidavit requesting the Tribunal to take on record the change in solvency categorization of JIICL from "Green" to "Red". The Lenders objected, noting that annuities had been received from the State of Jharkhand, making the entity solvent. The Tribunal concluded that JIICL should be declared a "Green" entity, subject to appropriate orders being passed by the Lenders regarding waivers and renegotiation of interest rates.

Issue 2: Re-categorization of JRPICL from "Green" to "Red"

Similarly, an affidavit dated 20.10.2022 filed by Respondent No.1 stated that JRPICL should be re-categorized from "Green" to "Red" due to non-receipt of annuity payments. However, subsequent annuity payments were received, making the entity solvent. The Resolution Consultant recommended re-categorization to "Green", subject to certain conditions. The Tribunal noted that the arbitral awards against JRPICL, which were under challenge, could not be grounds to refuse re-categorization. The Tribunal decided that JRPICL should be treated as a "Green" entity, with liberty for Respondent No.1 to seek re-categorization if financial liabilities from the arbitral awards affect the entity's ability to discharge its obligations.

Conclusion:

The Tribunal allowed IA No.1709 of 2022, holding that JIICL be treated as a "Green" entity, subject to Lenders' decisions on waivers and interest rate renegotiation. JRPICL is also to be treated as a "Green" entity, with liberty for Respondent No.1 to seek re-categorization if necessary due to financial liabilities from arbitral awards.

Ordered accordingly.

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