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The National Company Law Appellate Tribunal has asked Brookfield-backed Chronos Properties to renew its performance bank guarantee as part of its bid to acquire IL&FS’ Bandra Kurla Complex headquarters. The tribunal also restrained IL&FS from creating any third-party rights over the asset until the appeal concludes, keeping the dispute active ahead of the next hearing scheduled for early February.
The National Company Law Appellate Tribunal (NCLAT) has issued an interim directive requiring Brookfield-backed Chronos Properties to renew its performance bank guarantee in connection with its bid for Infrastructure Leasing and Financial Services Ltd’s flagship headquarters at Bandra Kurla Complex in Mumbai. The instruction forms part of ongoing appellate proceedings, after Chronos challenged an order passed recently by the Mumbai Bench of the National Company Law Tribunal (NCLT). Advertisement
Alongside the direction to Chronos, the appellate tribunal has also restrained the IL&FS group from creating any third-party rights over the property until the appeal reaches final adjudication. This temporary protection ensures that the asset remains free from encumbrances while the legal challenge continues.
The case arises from a dispute over the terms set out in the Letter of Intent (LoI) issued on 21 March 2022. The NCLT had earlier ruled that the LoI constituted a binding contract between Chronos and IL&FS, while also acknowledging IL&FS’ unilateral authority—under its court-approved resolution framework—to amend or modify the financial terms of the agreement. On this basis, the tribunal upheld IL&FS’ decision to increase the purchase consideration from INR 1,080 crore to INR 1,481 crore through a communication dated 16 August 2024.
Chronos had approached the appellate tribunal after the NCLT dismissed its plea seeking enforcement of the original INR 1,080-crore bid. Although the NCLT affirmed IL&FS’ right to revise the bid value, it also held that Chronos’ failure to renew its bank guarantee should not automatically lead to disqualification. It granted the bidder additional time to submit a fresh guarantee equivalent to 10 per cent of the bid amount with the tribunal registrar.
NCLAT has now reinforced this requirement, specifying that Chronos must comply within the stipulated timeframe if it wishes to remain in the acquisition process. The tribunal has directed both parties to complete their pleadings, including replies and rejoinders, by 16 January. The matter has been listed for the next hearing on 2 February, keeping the long-running dispute over the high-value Bandra Kurla Complex property unresolved for the time being.
Source - PTI
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