Nclt Declares Dchl Developer Bankrupt, Assets To Be Auctioned | Hyderabad News

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HYDERABAD: The National Company Law Court (NCLT), Hyderabad, has declared Deccan Chronicle Holdings Ltd (DCHL) promoter T Venkatram Reddy bankrupt and has appointed a Resolution Professional (RP) to collect details of lenders who have given money to DCHL.
A tribunal composed of judicial members Badarinath NV and technical member A Veerabrahma Rao issued the order after hearing a petition filed by Mumbai-based L&T Finance Ltd, which gave DCHL Rs 25 crore on a personal guarantee from Reddy in 2011 and was harmed by DCHL’s failure to repay. The PR would hold a meeting of creditors and auction the assets on Reddy’s behalf to settle the lenders’ dues, we learn.

According to lead lawyer K Vivek Reddy, who argued on behalf of L&T Finance, the case was then referred to an arbitral tribunal which issued a decision in 2013, requiring Reddy to repay Rs 25 crore with annual interest of 15% from January 2012. “Neither DCHL nor its promoter-directors complied with this arbitration award. Although Reddy challenged the award in the Bombay High Court, it was overturned by the High Court in 2015” , Vivek said.Later, following complaints from banks to NCLT, DCHL was declared insolvent and was sent to the Corporate Insolvency Resolution Process (CIRP).

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