HC tells Deccan Chronicle to pay Rs 101 Cr security to Tata Capital Fin

Written by PTI | Mumbai | Updated: Feb 23 2013, 03:46am hrs
The Bombay High Court has asked Deccan Chronicle Holdings Ltd (DCHL) and its Promoter T Venkattram Reddy to furnish within four weeks security for Rs 101 crore in favour of Tata Capital Financial Services Ltd (TCFSL) as on August 23, 2012, along with interest to the satisfaction of the court receiver.

The order was passed by Justice R D Dhanuka yesterday on a petition filed by TCFSL seeking recovery of Rs 101 crore loaned to the company last year for conducting business.

The judge noted that in case DCHL failed to give the security, then the court receiver would be entitled to receive Deccan's property admeasuring 2,152 square yards forming part of the estate in Mathuradas Mills Compound at Lower Parel and other assets or properties of Reddy including cash and bank balances, investments, vehicles etc.

"Until the court receiver takes possession of these properties, there would be an injunction against DCHL. The earlier interim orders on attachment of DCHL's properties and assets thus stood confirmed," the judge noted.

The High Court further said that six bank accounts of DCHL shall be attached and there shall be injunction in respect thereof. This interim order as well as ad interim order granted on November 6, 2012, on attachment of bank accounts, shall continue till disposal of the arbitration proceedings and for the period of four weeks thereafter.

DCHL and Reddy were also directed to disclose under oath the assets and properties owned by each of them within two weeks failing which appropriate action under Contempt of Court Act, 1971, shall be initiated against them.

On a separate petition in a similar matter, Justice Dhanuka, by a common order, also asked DCHL to pay Larsen and Toubro Rs 25 crore as on July, 20, 2012 with further overdue compensation at the rate of 15 per cent per annum from July 21, 2012 and expenses, cost, charges within two weeks.

The court ruled that if DCHL failed to pay the security, the Court Receiver would take over its properties within four weeks. DCHL was also restrained from creating any third party rights on the mortaged propeties.