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The National Company Law Tribunal has dismissed the ₹1,080 crore bid by Brookfield-backed Chronos Properties to acquire Infrastructure Leasing and Financial Services Ltd (IL&FS )’s flagship Bandra Kurla Complex property.
The National Company Law Tribunal (NCLT), Mumbai Bench, in its order on November 28, disposed of the application filed by Chronos seeking enforcement of the ₹1,080 crore bid to acquire the IL&FS Financial Centre at BKC.
The tribunal also upheld IL&FS’s contractual right to revise the transaction consideration.
In its order, the tribunal held that the Letter of Intent (LoI) dated March 21, 2022, constitutes a concluded and binding contract between IL&FS and Chronos.
However, the LoI contains clauses which grant IL&FS a unilateral right to amend, modify or supplement the LoI, including financial terms, under the court-approved resolution framework, the order added.
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The tribunal also ruled that the IL&FS letter dated August 16, 2024, which enhanced the consideration from ₹1,080 crore to ₹1,481 crore, is valid and cannot be quashed.
The NCLT further noted that IL&FS had submitted fresh valuation reports indicating an average fair-market value of approximately ₹1,722 crore for the property, and that revising the transaction value aligns with the value-maximisation objective mandated under the resolution process.
On the performance guarantee, the tribunal said that no disqualification arises immediately because IL&FS had not prescribed a renewal timeline and Chronos had signalled its willingness to deposit the guarantee with the NCLT.
The tribunal directed Chronos to tender the performance guarantee (demand drafts aggregating to 10% of the bid) to the tribunal within 30 days, failing which disqualification under the RFP (Request for Proposal) terms shall arise.
Earlier on June 26, IL&FS had approached the NCLT to scrap Chronos’s ₹1,080 crore bid for its flagship BKC property.
In its petition, IL&FS had sought dismissal of the Brookfield-backed bid for its flagship BKC property, the IL&FS Financial Centre (TIFC), citing bidder disqualification and non-compliance with bidding conditions.
IL&FS had alleged that an affiliate of Brookfield Chronos Properties (CPPL) was required to maintain a performance guarantee until the execution of definitive agreements.
The company had emphasised that 'value maximisation' is an important tenet for the public interest board’s mandate under the court-supervised resolution process and approved resolution framework, and sought Brookfield to revise its offer in line with the updated valuation, as per the filing with the NCLT.
The National Company Law Tribunal (NCLT), Mumbai Bench, in its order on November 28, disposed of the application filed by Chronos seeking enforcement of the ₹1,080 crore bid to acquire the IL&FS Financial Centre at BKC.
The tribunal also upheld IL&FS’s contractual right to revise the transaction consideration.
In its order, the tribunal held that the Letter of Intent (LoI) dated March 21, 2022, constitutes a concluded and binding contract between IL&FS and Chronos.
However, the LoI contains clauses which grant IL&FS a unilateral right to amend, modify or supplement the LoI, including financial terms, under the court-approved resolution framework, the order added.
Also Read: Jyotiraditya Scindia targets five-year turnaround: India Post to become profit centre, eyes quick-commerce push
The tribunal also ruled that the IL&FS letter dated August 16, 2024, which enhanced the consideration from ₹1,080 crore to ₹1,481 crore, is valid and cannot be quashed.
The NCLT further noted that IL&FS had submitted fresh valuation reports indicating an average fair-market value of approximately ₹1,722 crore for the property, and that revising the transaction value aligns with the value-maximisation objective mandated under the resolution process.
On the performance guarantee, the tribunal said that no disqualification arises immediately because IL&FS had not prescribed a renewal timeline and Chronos had signalled its willingness to deposit the guarantee with the NCLT.
The tribunal directed Chronos to tender the performance guarantee (demand drafts aggregating to 10% of the bid) to the tribunal within 30 days, failing which disqualification under the RFP (Request for Proposal) terms shall arise.
Earlier on June 26, IL&FS had approached the NCLT to scrap Chronos’s ₹1,080 crore bid for its flagship BKC property.
In its petition, IL&FS had sought dismissal of the Brookfield-backed bid for its flagship BKC property, the IL&FS Financial Centre (TIFC), citing bidder disqualification and non-compliance with bidding conditions.
IL&FS had alleged that an affiliate of Brookfield Chronos Properties (CPPL) was required to maintain a performance guarantee until the execution of definitive agreements.
The company had emphasised that 'value maximisation' is an important tenet for the public interest board’s mandate under the court-supervised resolution process and approved resolution framework, and sought Brookfield to revise its offer in line with the updated valuation, as per the filing with the NCLT.
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