Ministry of Finance must place its stand on Petition for Attachment of assets post the resolution plan being approved

The Delhi High Court has directed the Ministry of Finance to clarify its position regarding the attachment of assets belonging to M/s. Deccan Chronicles Holding Limited. This follows a provisional attachment order issued by the Directorate of Enforcement. The bank had declared the company's account as a Non-Performing Asset and initiated recovery proceedings before the Debt Recovery Tribunal and under the SARFAESI Act.

IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of decision:8th February, 2021
+ W.P.(C) 1547/2021 & CM APPL. 4433/2021
UNION BANK OF INDIA E ANDHRA BANK ..... Petitioner
Through: Mr. Alok Kumar, Advocate.
versus
UNION OF INDIA & ORS. ..... Respondents
Through: Mr. Jasmeet Singh, CGSC for UOI.
(M:9810064790)
Mr. Zoheb Hussain, Advocate for ED.

CORAM:
JUSTICE PRATHIBA M. SINGH

Prathiba M. Singh, J.(Oral)

1. This hearing has been done through hybrid mode (physical and virtual hearing).

CM APPL. 4434/2021 (for exemption)

2. Allowed, subject to all just exceptions. Application is disposed of. W.P.(C) 1547/2021 & CMAPPL. 4433/2021 (for stay of the provisional nattachment order)

3. The Union Bank of India has approached this Court challenging the provisional attachment order dated 15th October, 2020 passed by the PMLA Adjudicating Authority i.e., Deputy Director, Directorate of Enforcement, under the provisions of Prevention of Money Laundering Act, 2002 (hereinafter referred as “PML Act”).

4. The case of the Petitioner, Union Bank of India E Andhra Bank (hereinafter, “Bank”), is that the account of the Respondent No.4 – M/s. Deccan Chronicles Holding Limited, was declared as a Non-Performing Asset (“NPA”) on 31st December 2012. Thereafter, proceedings were initiated before the Debt Recovery Tribunal by the Petitioner against Respondent No. 4 and a recovery certificate was issued in its favour by the DRT. Further, action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (hereafter referred as “SARFAESI Act”) was also taken by the Petitioner Bank, which at that stage was called the Andhra Bank.

5. During the pendency of the SARFAESI proceedings, Canara Bank, one of the lenders to the said debtor/ Respondent No. 4, approached the National Company Law Tribunal, Hyderabad (hereinafter referred as NCLT”) under Section 7 of The Insolvency and Bankruptcy Code, 2016(hereinafter referred as the “IBC”) for initiation of the Corporate Insolvency Resolution Process (hereinafter referred as “CIRP”) against the debtor. The Resolution plan, submitted by the SREI Multiple Asset Investment Trust- Vision India Fund was finally approved by the NCLT on 3rd June, 2019.

To know more in details find the attachment file