Advertisement
The National Company Law Tribunal (NCLT) in Mumbai, earlier this past week, dismissed the INR 1,080 crore bid submitted by Brookfield-backed Chronos Properties for acquiring IL&FS's flagship Bandra Kurla Complex (BKC) property. The tribunal upheld IL&FS's contractual authority to revise the consideration under the court-approved resolution framework, accepting the company's move to increase the valuation to INR 1,481 crore. It also noted that updated valuation reports placed the property's fair-market value at around INR 1,722 crore. The order additionally clarified the status of Chronos's performance guarantee obligations under the bidding conditions.
The National Company Law Tribunal in Mumbai recently dismissed the INR 1,080 crore offer submitted by Brookfield-backed Chronos Properties to acquire Infrastructure Leasing & Financial Services Ltd's flagship property at the Bandra Kurla Complex. The ruling disposed of Chronos's application seeking enforcement of its original bid for the IL&FS Financial Centre, a proposal the company had been attempting to secure since its initial submission. Advertisement
In its order issued late in the past week, the tribunal affirmed IL&FS's contractual right to revise the transaction consideration. It observed that the Letter of Intent executed in early 2022 formed a concluded and binding contract between IL&FS and Chronos. However, the LoI included clauses granting IL&FS unilateral powers to modify, amend or supplement its terms, including financial aspects, in line with the court-cleared resolution framework that has guided the IL&FS group's restructuring since the financial crisis it faced several years ago.
The tribunal further upheld the IL&FS communication issued in mid-2024, through which the consideration was increased from INR 1,080 crore to INR 1,481 crore. It stated that this revision was valid and could not be dismissed. The bench noted that IL&FS had submitted updated valuation reports indicating an average fair-market value of roughly INR 1,722 crore for the BKC property, and emphasised that the enhancement aligned with the value-maximisation principle governing the resolution process-an approach IL&FS has consistently highlighted since the initiation of its court-monitored restructuring.
Regarding the performance guarantee, the tribunal clarified that Chronos did not stand immediately disqualified because IL&FS had not specified a clear renewal timeline. It also recorded that Chronos had expressed its willingness to furnish the guarantee before the tribunal. The bench directed the bidder to submit demand drafts equivalent to 10 per cent of its original offer within 30 days. Should the company fail to comply, the disqualification provisions under the Request for Proposal terms would apply.
IL&FS had moved the tribunal earlier in the past year seeking dismissal of Chronos's original INR 1,080 crore bid, citing alleged non-compliance with bidding norms and lapses linked to the performance guarantee. The company had maintained in its petition that the affiliate representing Brookfield-backed Chronos was required to maintain the guarantee until the execution of the final transaction documents. It had reiterated before the tribunal that value maximisation was central to the mandate of its public interest board, and that Chronos's offer must reflect the updated valuation of the BKC asset.
Source - PTI
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
