BS Reporter | Chennai
December 31, 2013 Last Updated at 20:48 IST
The Debt Recovery Tribunal was in favour of Canara Bank in auctioning the company's property to realise around Rs 360 cr
The Madras High Court has directed Deccan Chronicle Holdings Ltd (DCHL) to approach the appropriate forum against the order of the Debt Recovery Tribunal II, which was in favour of Canara Bank auctioning the company’s property to realise around Rs 360-crore.
The high court, which dismissed the writ petition of DCHL, has ordered to maintain status quo to not sell the media group’s assets for eight weeks.
The petition was filed by DCHL challenging an order passed on September 26, 2013, by the Debts Recovery Tribunal II, Chennai, which was in favour of Canara Bank, which has initiated procedures to auction the company’s various assets under the the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, 2002. The appropriate forum for DCHL to approach is the Debt Recovery Appellate Tribunal, according to legal sources.
An email sent to a DCHL official did not elicit any response till the time of going to press.
The bench comprising of Justice M Jaichandren and JusticeK Kalyanasundaram, in the order issued on December 16, 2013, said, “...the petitioner is permitted to move the appropriate forum, provided under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, within a period of eight weeks from today, failing which it would be open to the First respondent (The Authorised Officer of Canara Bank) bank to proceed further, as per the relevant provisions of law, including the provisions contained in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.”
If the petitioner approaches the appropriate forum in time, as specified in the order, the appropriate forum shall entertain such matter, on merits and in accordance with law and dispose of the same, without raising the issue of delay, in the filing of the matter, it added.
“We also make it clear that the petitioner, including the First respondent bank, shall maintain status quo, for a period of eight weeks from today,” said the order.
The court also stated that even though various grounds have been raised on behalf of the petitioner, the Court is of the considered view that the petitioner ought to make its claims, relating to the issues arising for the consideration of the Court, in the present Writ Petition, before the appropriate forum, as provided under the SARFAESI Act, 2002. We make it clear that it would be open to the petitioner to raise all the grounds available to it, before the appropriate forum, as per law.
According to earlier reports, DCHL owes around Rs 358 crore to Canara Bank, for which the lender has taken legal action. It has earlier issued an advertisement in the news papers seeking bidders for DCHL's property in Chennai, along with machinery in Tamil Nadu and Andhra Pradesh.
The Bank has also filed a complaint with the Central Bureau of Investigation to investigate the alleged irregularities in the DCHL balance sheet along with various related issues.
The high court, which dismissed the writ petition of DCHL, has ordered to maintain status quo to not sell the media group’s assets for eight weeks.
The petition was filed by DCHL challenging an order passed on September 26, 2013, by the Debts Recovery Tribunal II, Chennai, which was in favour of Canara Bank, which has initiated procedures to auction the company’s various assets under the the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, 2002. The appropriate forum for DCHL to approach is the Debt Recovery Appellate Tribunal, according to legal sources.
An email sent to a DCHL official did not elicit any response till the time of going to press.
The bench comprising of Justice M Jaichandren and JusticeK Kalyanasundaram, in the order issued on December 16, 2013, said, “...the petitioner is permitted to move the appropriate forum, provided under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, within a period of eight weeks from today, failing which it would be open to the First respondent (The Authorised Officer of Canara Bank) bank to proceed further, as per the relevant provisions of law, including the provisions contained in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.”
If the petitioner approaches the appropriate forum in time, as specified in the order, the appropriate forum shall entertain such matter, on merits and in accordance with law and dispose of the same, without raising the issue of delay, in the filing of the matter, it added.
“We also make it clear that the petitioner, including the First respondent bank, shall maintain status quo, for a period of eight weeks from today,” said the order.
The court also stated that even though various grounds have been raised on behalf of the petitioner, the Court is of the considered view that the petitioner ought to make its claims, relating to the issues arising for the consideration of the Court, in the present Writ Petition, before the appropriate forum, as provided under the SARFAESI Act, 2002. We make it clear that it would be open to the petitioner to raise all the grounds available to it, before the appropriate forum, as per law.
According to earlier reports, DCHL owes around Rs 358 crore to Canara Bank, for which the lender has taken legal action. It has earlier issued an advertisement in the news papers seeking bidders for DCHL's property in Chennai, along with machinery in Tamil Nadu and Andhra Pradesh.
The Bank has also filed a complaint with the Central Bureau of Investigation to investigate the alleged irregularities in the DCHL balance sheet along with various related issues.
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