NCLT Mumbai Dismisses Plea By Former Director R.C. Bawa's Wife, Daughter To Be Removed From IL&FS Proceedings

The National Company Law Tribunal at Mumbai has dismissed a plea filed by Asha Kiran Bawa and Akansha Bawa in the IL&FS proceedings, holding that they continue to be necessary parties in the Union of India's petition alleging oppression and mismanagement and large-scale financial irregularities in the company.

R.C. Bawa, a former director of IFIN (IL&FS Financial Services Ltd), is the husband of Asha Kiran Bawa and the father of Akansha Bawa.

A bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar observed:

“Accordingly, the applicant's contention that there is no finding in relation to them in the said report is devoid of any merit, and considering the serious allegations made against Mr. R C Bawa in the SFIO investigation report, which though are yet to be tested, we do not find any merit in the present application seeking reconsideration of the order passed by this Tribunal making the applicants as party respondents.”

The application was filed by the applicants in proceedings initiated by the Union of India under Sections 241-242 of the Companies Act in relation to Infrastructure Leasing & Financial Services Ltd (IL&FS).

The applicants sought deletion on the ground that no findings had been recorded against them in the Serious Fraud Investigation Office (SFIO) report and contended that the order dated January 6, 2025 in the contempt proceedings showed that the basis for their impleadment no longer survived.

The tribunal, however, noted that substantial funds were transferred from R.C. Bawa's accounts to his wife and daughter on December 3, 2018, including Rs 4.84 crore and Rs 27.67 crore, and that these funds were further routed through entities where they were directors.

It also referred to the broader IL&FS/IFIN case involving alleged siphoning of approximately Rs 91,000 crore, which is under investigation by the SFIO.

Rejecting their contention, the Tribunal held that their impleadment was based on material showing fund transfers and involvement in related entities, which continues to remain relevant for proper adjudication of the case.

Accordingly, the NCLT dismissed the application, holding that the applicants are necessary parties to the proceedings.