TaxTMI 
TaxTMI 
2021 (1) TMI 148
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....ons 241 and 242 of the Companies Act, 2013 (the Act) inter alia alleging mismanagement in the Company. 3. This Tribunal by an order dated 01/10/2018 superseded the Board of Directors of IL & FS and constituted a new Board with six Directors to take over the affairs of the Company. In addition to the six Directors appointed on 01/10/2018, this Tribunal appointed three more Directors vide order dated 03/10/2018 (pursuant to which one more director was appointed) and order dated 21/12/2018 (pursuant to which two more directors were appointed). The new Board was directed to furnish a roadmap for consideration of the Tribunal. This Tribunal by an order dated 12/10/2018 in MA No. 1173 of 2018 declined to order a moratorium in respect of IL & FS group. The UoI and IL & FS carried the matter in Appeal before the Hon'ble National Company Law Appellate Tribunal (NCLAT) respectively in Company Appeal No. 346 of 2018 and Company Appeal No. 347 of 2018. The Hon'ble NCLAT by an order dated 15/10/2018 granted interim stay against any coercive action by the creditors against IL & FS and its group entities. 4. The New Board prepared periodical progress reports in terms of the order dt. 01/10/2018....
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.... the IL & FS Group which are incorporated within the territorial jurisdiction of India (Indian IL&FS Entities) and entities that are incorporated in other countries (Offshore IL&FS Entities). In compliance the UoI filed an affidavit dated February 11, 2019 placing on record before the Hon'ble NCLAT, the list of 169 Indian IL&FS Entities and 133 Offshore IL & FS Entities. Hon'ble NCLAT by order dated 11/02/2019 inter alia excluded the Offshore IL & FS Entities from the purview of the October 15 Order (15/10/2018) and directed that the resolution of the Offshore IL & FS Entities may be taken up by the New Board under the supervision of Hon'ble Justice D. K. Jain (Retd.). NCLAT also directed that the actions taken for the resolution of the Offshore IL & FS Entities be presented to this Tribunal. 8. Thus, basing on the recommendations of Hon'ble Justice Jain, the resolution was then to be placed before the NCLT (this Tribunal) for approval. The approval by this Tribunal would formalize and finalize the resolution of the individual or collective group entities. 9. By their order dated 12/03/2020 the Hon'ble Appellate Tribunal accepted 15/10/2018 as the cut-off date for distribution of....
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.... efforts, even after several rounds of negotiations held by the USA FTA (investment banker), IIPL was unsuccessful in obtaining a binding bid for the sale of its equity stake in IIPL USA. As no bids were submitted for purchasing IIPL's shareholding in IIPL USA, it was proposed that steps be taken for the closure of IIPL USA's business activities and proceed towards closure/completion of on-going contracts, termination of employees, sale of noncore assets, and finally, file for its dissolution. 14. The proposal to sell IIPL USA's non-core assets was approved by the New Board and Justice D. K. Jain (Retd.). The Applicant then filed an affidavit before this Tribunal bringing on record the details of the proposed sale of the non-core assets of IIPL USA and the approval of Justice D. K. Jain (Retd.) in respect of the same. This Tribunal by an order dated 25/11/2019, took on record the said affidavit in respect of the sale of the non-core assets of IIPL USA. Accordingly, IIPL USA conducted a sale of its non-core assets such as office furniture, cars, plant & machinery, employee assets etc. The order dt. 25/11/2019 is annexed to the Application as 'Annexure 6'. 15. IIPL USA also vacated....
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....er, IIPL USA had no known external liabilities as on 31/03/2020. Other liabilities of IIPL USA comprise of loans payables to IIPL and ITNL aggregating to USD 662,644 after considering the write back due to liquidation basis of accounting. The outstanding amount of loans including interest thereon preliquidation write back are: USD 2,000,000 towards ITNL and USD 606,213 towards IIPL. 20. The accounts of IIPL USA have been audited for the Financial Year 2019 and Financial Year 2020. As on 31st March, 2020, the Assets and Liabilities of IIPL USA as per the audited accounts are as follows: ASSETS USD Cash in Hand 662,644 Restricted Cash - Attorney escrow 50,000 Total 712,644 LIABILITIES USD Due to Group Companies 662,644 Estimated costs of liquidation 50,000 Total 712,644 21. IIPL USA has filed its tax returns for Financial Year 2018-2019 on 15/01/2020 and has appointed a tax consultant for computation and filing of returns for the Financial Year 2019-2020, which is expected to be completed/filed shortly. The summarized financial position of IIPL USA for the last 4 financial years is provided below: IIPL USA in USD Milli....