The National Company Law Appellate Tribunal (NCLAT) has reserved its decision on a request from the State Bank of India (SBI) to release ₹275 crore from an escrow account of Baleshwar Kharagpur Expressway Ltd (BKEL), a company under the IL&FS group.
SBI’s lawyer informed the NCLAT that BKEL has a surplus of ₹330 crore. Last December, the company proposed an interim distribution of ₹204 crore, with half going to the National Highways Authority of India (NHAI) and the other half to SBI. However, SBI has requested ₹275 crore instead.
SBI’s lawyer argued that it has been nearly six years, and secured creditors like SBI are still waiting for their share of the funds.
In April, the NCLAT ruled that secured creditors, such as SBI, should be prioritized in the distribution of funds, meaning their debts should be paid before other payments, including those to NHAI.
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