Banks can proceed against ex-IL&FS directors: NCLAT

NEW DELHI: NCLAT has allowed state-owned Canara Bank and Indian Bank to pursue proceedings against former IL&FS directors, who are not part of the new board, to declare them as wilful defaulter. However, NCLAT said those directors, who are part of new board of IL&FS and its various subsidiaries after Oct 1, 2018, would remain protected.
"We are of view this protection shall extend to professional directors, who have been reappointed in IL&FS and subsidiaries, who are part of present board. With respect to IL&FS and IL&FS Group...we grant leave to bank to make an application to proceed against them."