We are pleased to share that Argus Partners has successfully represented the erstwhile Housing Development Finance Corporation Limited (since merged with HDFC Bank Limited) (‘HDFC’) before the Supreme Court, against Infrastructure Leasing and Financial Services Limited (‘IL&FS’).

The Supreme Court, upholding the NCLAT’s decision, allowed HDFC to appropriate rent receivables from IL&FS’ lessees/ licensees toward repayment of the financial assistance extended by HDFC to IL&FS. The Court agreed with HDFC’s submission that the rent receivables stood assigned to HDFC and were its exclusive property, as opposed to being mere security interest as urged by IL&FS.

Since October 2018, the IL&FS group has been undergoing an NCLAT supervised group insolvency process, and lenders have been restrained from recovering their dues from IL&FS entities. The recent Supreme Court verdict is a rare instance of a financial institution having been able to secure recourse to its entire outstanding, in the ongoing IL&FS insolvency process.

The team at Argus Partners representing HDFC consisted of Krishnava Dutt (Managing Partner), R. Sudhinder (Senior Partner), Aastha and Udit Mendiratta (Partners), Ekta Bhasin (Principal Associate) and Aastha Trivedi (Senior Associate).

Please find a copy of the Supreme Court judgment, here.

Read more at: LiveLaw