NCLAT Sets Aside NCLT Order in IL&FS Case: Parties Succeed in Appeal Over Unauthorised Amendment

In a significant development in the ongoing IL&FS saga, the National Company Law Appellate Tribunal (NCLAT) has set aside an order passed by the National Company Law Tribunal (NCLT). The case involved an appeal against an NCLT order that had allowed an unauthorized amendment to a petition filed by the government. The NCLAT found that the NCLT had erred in permitting this amendment without following the due legal process. The appellate tribunal held that such an amendment, which was not supported by law, had prejudiced the case of the appellants, which included the audit firm Deloitte. By allowing the appeal and setting aside the flawed NCLT order, the NCLAT has provided a major procedural victory to the parties and has emphasized the importance of strict adherence to legal procedures in corporate insolvency and governance matters.