The National Company Law Appellate Tribunal (NCLAT) Tuesday permitted the debt ridden IL&FS and its group firm IL&FS Engineering and Construction Company to extend a bank guarantee of Rs 60.29 crore issued to state-run National Highways Authority of India (NHAI).
A two-member bench headed by Chairman Justice S J Mukhopadhaya said it was not inclined to NHAI's plea to direct to IL&FS firm to invoke the bank guarantee, which is lapsing on March 1, 2019.
"Taking into consideration the facts and circumstances of the case, while we are not inclined to direct M/s IL&FS Engineering and Construction Company Ltd or IL&FS to invoke the Bank Guarantee aforesaid, allow the alternative prayer for extension of the Bank Guarantee for another period of six months from 1st March, 2019," said NCLAT.
It further said: "If such request is made to the concerned Bank, they will extend it for six months."
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