The National Company Law Tribunal (NCLT), Mumbai Bench, has dismissed the ₹1,080 crore bid submitted by Chronos Properties to acquire Infrastructure Leasing & Financial Services Ltd.’s (IL&FS) prime commercial property located in Mumbai’s Bandra Kurla Complex (BKC). The tribunal issued its order on November 28, closing the application filed by Chronos that sought enforcement of its original bid and Letter of Intent (LoI).
Chronos Properties, backed by Brookfield, had been selected as the highest bidder in March 2022. The LoI issued to the company was deemed a binding document by the tribunal. However, NCLT upheld IL&FS’s contractual right to revise the financial terms of the transaction as permitted under the broader resolution framework that governs the company’s asset sale process.
In August 2024, IL&FS revised the transaction value from ₹1,080 crore to ₹1,481 crore. This change was supported by an updated valuation report placing the fair market value of the BKC asset at approximately ₹1,722 crore. The tribunal stated that IL&FS’s decision aligned with the resolution process’s core principle of value maximisation, and therefore could not be set aside.
The issue of the performance guarantee was also addressed in the ruling. While Chronos expressed its willingness to submit the guarantee amounting to 10 percent of the original bid value, IL&FS had not communicated a formal timeline for renewal. The tribunal directed Chronos to furnish demand drafts equivalent to the guarantee amount within 30 days. Failure to do so would result in disqualification under the terms of the Request for Proposal (RFP).
With this order, Chronos’ attempt to secure the property at the earlier bid value stands rejected. The ruling reinforces IL&FS’s discretion to modify transaction terms in line with updated valuations and the insolvency resolution mandate. The next steps will depend on Chronos’ compliance with the performance guarantee requirement and any further legal or commercial action it may pursue.
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