NCLT directs IL&FS, NTADCL to resolve debt dispute elsewhere

The National Company Law Tribunal (NCLT) has directed New Tirupur Area Development Corporation (NTADCL) and IL&FS to pursue their debt dispute in the appropriate legal forums. This follows a disagreement over loan repayments. NTADCL and IL&FS, a shareholder, are in a dispute over a loan for a water and sewerage project. NTADCL alleges fraud in loan disbursement, while IL&FS seeks recovery of overdue amounts. The NCLT found contested facts and directed IL&FS to pursue recovery in civil court. The Tamil Nadu government, a major shareholder in NTADCL, infused funds to revive the project. IL&FS will now seek recovery through civil courts, while NTADCL may approach the Serious Fraud Investigation Office regarding the disputed charges.