NCLAT Restores IFIN Claims in Attivo Insolvency Case

The National Company Law Appellate Tribunal (NCLAT) reinstated IL&FS Financial Service's claims worth Rs 593 crore and its voting rights in Attivo Economic Zones' insolvency process. This overturned a prior rejection by Attivo's interim resolution professional and restored IFIN's 39.14% share in the creditors' committee.

The National Company Law Appellate Tribunal (NCLAT) has intervened to restore the claims and voting rights of IL&FS Financial Service (IFIN) in the ongoing insolvency process of Attivo Economic Zones. These claims, amounting to Rs 593 crore, were initially rejected by the interim resolution professional overseeing Attivo's insolvency.

The tribunal's decision comes as a blow to Attivo's interim resolution professional, who had dismissed IFIN's claim as a financial creditor. This rejection had temporarily left Kolkata-based Srei Infrastructure Finance as the sole member of the Committee of Creditors (CoC), leading to a resolution for liquidation.

NCLAT's ruling reverses this course, restoring IFIN's influence with a 39.14% voting share. This reinstatement is pivotal, given that IFIN had previously initiated insolvency proceedings against Attivo after a default on term loans disbursed in 2017 and 2018.

(With inputs from agencies.)