“Until the next date in this matter, there shall be a stay of the proceedings… subject to the condition that the Petitioner Bank shall place on record any details of the steps taken to monetize the assets and the recovery made, if any,” said the Delhi High Court in the order.
A Single Judge Bench of Justice Pratibha Singh of the Delhi High Court has stayed the provisional attachment order of the Enforcement Directorate, confiscating the properties of Deccan Chronicle Holdings after the resolution plan was approved by National Company Law Tribunal, Hyderabad. The company has already been taken over by a new management.
Earlier, the National Company Law Tribunal approved a resolution plan, submitted by the SREI Multiple Asset Investment Trust- Vision India Fund, on June 3, 2019. Implementation of the resolution plan was also in process. “This High Court order shall help ongoing insolvency processes and pave the way for unlocking the assets stuck in similar proceedings,” said Anil Goel, founder and chairman of AAA Insolvency.
“Several insolvency proceedings are considerably delayed as a result of such attachments by the authorities even though the banks agree upon successful resolution plans or liquidation,” he said. Bank credit lines given to Hyderabad-based Deccan Chronicles were marked as bad loans more than eight years ago. The application was filed by Union Bank of India, which had merged Andhra Bank into its fold.
