NCLAT Permits Chronos Properties to Renew Bank Guarantee, Valid for Next 6 Months

Insolvency appellate tribunal NCLAT has permitted Brookfield-backed Chronos Properties, which is in the race for acquiring the Infrastructure Leasing and Financial Services (IL&FS) flagship Bandra Kurla Complex property, to replace within a week its bank guarantee that expired this month.

A two-member NCLAT bench comprising Chairperson Justice Ashok Bhushan and Member (Technical) Barun Mitra has directed to list the matter on April 27 for next hearing.

"Counsel for the Appellant submits that in pursuance of the interim order, Appellant (Chronos) has deposited the demand draft whose validity expires on March 15, 2026. Appellant seeks liberty to replace the Demand Draft by another demand draft with the validity of at least six months," NCLAT noted in its order.

"It shall be open for the Appellant to file a fresh Demand Draft within a week," said NCLAT in its order passed on March 13, 2026.

Besides, the National Company Law Appellate Tribunal (NCLAT) directed that the interim order passed by it on December 5, where it had directed the debt-ridden IL&FS group not to create third-party rights on its headquarters until the appeal is finally decided, will "continue".

In January, Chronos Properties has renewed a ₹148 crore bank guarantee to stay in the race for IL&FS's Bandra Kurla Complex property.

On December 5, 2025 the NCLAT had directed Chronos Properties to renew its bank guarantee within a month to avoid disqualification as a bidder for IL&FS Financial Centre (IL&FS HQ) at BKC, Mumbai.

Brookfield had challenged NCLT's recent order that upheld IL&FS's right to enhance the purchase consideration for the headquarters property under the contractual provisions of the LoI, in line with the value-maximisation principle underpinning the IL&FS resolution framework.

Chronos’ original bid for the asset stood at ₹1,080 crore, approved through IL&FS’ four-tier resolution mechanism.

IL&FS subsequently revised the consideration to ₹1,481 crore, citing provisions in the LoI that allow this, updated valuation reports, and its obligation to maximise value under the IL&FS Resolution Framework. The bank guarantee is in accordance with the revised valuation.

This was contested by Chronos before NCLT.

However, NCLT, while affirming IL&FS' contractual powers, held that Chronos' failure to renew the bank guarantee could not, by itself, lead to disqualification, and granted it time to submit a fresh bank guarantee equivalent to 10% of the bid value with the tribunal registrar.

On December 1, NCLT dismissed the ₹1,080-crore bid by Brookfield-backed Chronos Properties to acquire IL&FS' Bandra Kurla Complex property.