AP high court directs DCHL to deposit one crore with Debts Recovery Tribunal
January 31 2014
Source: The Times of India
HYDERABAD: The AP High Court on Thursday directed the management of Deccan Chronicle Holdings Ltd (DCHL) to deposit Rs one crore within two weeks with the Debts Recovery Tribunal (DRT) which is currently hearing several pleas by ICICI bank seeking recovery of its loans.
The Hyderabad based DRT earlier directed the DCHL to furnish security to prevent auction of its pledged asset Hawker Aircraft. It was this order that was challenged by DCHL in the high court.
The division bench comprising justices Ashutosh Mohunta and M Satyanarayana Murthy saw nothing wrong in the DRT order and therefore directed the company to deposit Rs one crore to convince both the tribunal and the lender bank about its intentions and bonafides. ICICI Bank counsel Sriharsha Reddy told the court that the tribunal said that it would opt for auction only if the company fails to furnish the security.
In another development, Delhi High Court ordered the DRT of Hyderabad not to hand over the proceeds of the sale of aircraft, in the event of its auction, to the management of DCHL. The Delhi HC made this interim order on Friday following a plea by ICICI securities which is struggling to recover Rs 45 crore it invested in the DCHL's non convertible debentures.
The aircraft was mortgaged to both ICICI bank and ICICI Securities by the DCHL management for loans. The ICICI Bank has been waging a separate legal battle to recover a total of Rs 500 crore it lent to the debt-trapped DCHL.