The resolution professional of Deccan Chronicle Holdings Limited (DCHL) on Tuesday approached the Hyderabad High Court seeking orders against an attempted seizure of the company’s corporate office by Indiabulls.
Indiabulls Financial Services Limited has a Rs 1.65 billion claim from DCHL, which is undergoing an insolvency resolution process at the Hyderabad Bench of the National Company Law Tribunal (NCLT).
On Monday, armed with a chief metropolitan magistrate’s directions, the officials of the non-banking financial company initiated a seizure of the Deccan Chronicle’s main office located in Secunderabad. Indiabulls claims to have an exclusive lien over the media house’s corporate office, besides a printing press property at Kompally on the city outskirts.
The resolution professional has approached the high court against Indiabulls’s action on the grounds that there was a moratorium on all such actions, legal or otherwise, by the company lenders, owing to the ongoing insolvency resolution process.
On the other hand, Indiabulls had initiated action to take possession of the said property as it was not registered under the company’s name. The promoters of the company own the premises, according to the lender.
NCLT’s Hyderabad Bench recently directed the committee of creditors (CoC) to examine the revised resolution plan submitted by Srei group’s Vision India Fund following the extension of the insolvency resolution period by the appellate tribunal. According to the claims approved by the resolution professional, the company owes close to Rs 800 billion to lenders.
Last month, Srei had received a favourable order from the National Company Law Appellate Tribunal (NCLAT) on its claim that it be recognised as a financial creditor and be given a place on the CoC. Earlier, it was denied the status of a financial creditor by the adjudicating authority on the grounds that Srei has a shareholding in the company.