‘Order cannot be passed without hearing all creditors’
Deccan Chronicle Holdings Limited (DCHL) suffered a setback after the Andhra Pradesh High Court turned down its request to grant a stay on legal proceedings launched against the company by creditors in various lower courts.
Justice N. R. L. Nageswar Rao dealt with a petition filed by the promoters of DCHL on Wednesday seeking stay on the ground that the proposed demerger of its printing and publishing, retail and sports wings was pending. The DCHL management filed the petition claiming that a new entity Land Interactive Media, registered in New Delhi, would be formed and this would ensure flow of capital into the Hyderabad-based media house that was facing rough weather. It said that the legal proceedings would obstruct the demerger.
The Judge was, however, not inclined to grant the stay when he said such an order could not be passed without hearing all creditors, bankers and others. The DCHL management could instead file petition in those courts informing them that the final approval for its demerger proposal was pending.
Several creditors, who approached the court on receipt of notices, however, raised objections to the proposed demerger, and the Judge directed them to file their objections before the court.