Archive · 13 Dec 2025
NCLAT Orders Chronos to Renew Bank Guarantee for IL&FS Property
The National Company Law Appellate Tribunal (NCLAT) has told a company called Chronos Properties to renew a special promise to pay money (bank guarantee) so they can buy a big office building from another company called IL&FS.
The building is in Mumbai.
IL&FS cannot sell or give rights to this building to anyone else until the court makes a final decision.
Chronos had offered to buy the building for a lot of money, but IL&FS wanted more money, and the court said that's okay.
Now, Chronos has to promise to pay a part of that money again, or they might not be able to buy the building.
The court will decide more about this in February.
NCLAT directed Chronos Properties to renew the bank guarantee for acquiring IL&FS' Bandra Kurla Complex property.
IL&FS was barred from creating third-party rights on the property until the appeal is decided.
Chronos must comply with the bank guarantee condition to avoid disqualification in the acquisition process.
The next hearing is scheduled for February 2, 2026, with both parties required to complete pleadings by January 16, 2026.
NCLT had earlier upheld IL&FS' right to enhance the purchase consideration for the property under the contractual provisions of the Letter of Intent (LoI).
- Who
- Chronos Properties (Brookfield-backed) and IL&FS
- What
- NCLAT ordered Chronos to renew the bank guarantee for acquiring IL&FS' Bandra Kurla Complex property and barred IL&FS from creating third-party rights on the property
- When
- The order was passed on December 13, 2025, with the next hearing scheduled for February 2, 2026
- Where
- The case is being heard by the National Company Law Appellate Tribunal (NCLAT)
- Why
- To ensure compliance with the contractual provisions and to protect the asset pending final adjudication of the appeal
- Parties Involved
- Chronos Properties, IL&FS
- Property in Question
- IL&FS Bandra Kurla Complex headquarters
- Initial Bid Amount
- Rs 1,080 crore
- Revised Bid Amount
- Rs 1,481 crore
- Bank Guarantee Requirement
- 10% of the bid value
- Next Hearing Date
- February 2, 2026
- Key Legal Document
- Letter of Intent (LoI) dated March 21, 2022
- Tribunal Involved
- National Company Law Appellate Tribunal (NCLAT)