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Corporate Sep 5, 2012

Bombay HC restrains Deccan Chronicle from selling Mumbai property

In an arbitration petition filed by Tata Capital against Deccan Chronicle Holdings Ltd (DCHL) for recovery of Rs 101 crore loan, the Bombay High Court, on Tuesday, restrained DCHL from selling or disposing of its building in Lower Parel area of Central Mumbai.

Reacting to the news, shares of Deccan Chronicle plunged 4.43 percent on the BSE to trade at Rs 12.49 while the Sensex is down 0.34 percent at 17381 levels.

The DCHL building, on a plot measuring 2,152 square yards at Mathuradas Mills Compound in Lower Parel area of Central Mumbai, was mortgaged to Tata Finance which urged the court to pass an injunction against this property.

Hearing Tata Capital lawyers Ashok Paranjpe and Janak Dwarkadas, Justice S J Kathawala also ordered attachment of six accounts of DCHL in ICICI Bank, HDFC Bank, Punjab National Bank and Canara Bank.

AFP

The court further ordered that transactions only up to the extent of Rs 5 crore in these accounts are permitted, Paranjpe said.

The court has asked the company and its Director and Guarantor T Venkattram Reddy to disclose their assets in an affidavit.

A term loan had been sanctioned by Tata Finance to DCHL which it allegedly defaulted in repaying. A notice was served and it promised to repay the loan within the specified period.

As the payment was not made, Tata Finance filed an arbitration petition in the high court, its lawyers contended.

Advocates for DCHL sought time to file a reply and the matter was adjourned to September 27 for further hearing.

PTI

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