Upholding an order passed by the Hyderabad Chief Metropolitan Magistrate, the Hyderabad High Court on Monday ruled that Indiabulls Housing Finance Limited can take over the property of Deccan Chronicle Holdings Limited near Clock Tower in Secunderabad.
Pronouncing the verdict in the writ petition filed by DCHL, a division bench comprising Justice Ramesh Ranganathan and Justice Kongara Vijaya Lakshmi gave time to DCHL till November 30 to vacate the premises.
The bench observed that permitting Indiabulls to take over possession of the property immediately would hamper business operations of the DCHL which was carrying out activities from the premises for past several years. If the DCHL failed to vacate the property on or before November 30, Indiabulls can take up any further legal action to secure possession of the property, the bench said. The DCHL had moved the HC challenging an order passed by the Hyderabad Chief Metropolitan Magistrate.
Mortgaged property
The HCMM ruled that Indiabulls advanced ₹100- crore loan to DCHL on mortgage of its property in Secunderabad. As DCHL failed to repay the loan, Indiabulls filed a petition under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act. The court appointed an advocate commissioner to take possession of the mortgaged property.
Challenging this order, the DCHL filed an appeal. The matter culminated with the Supreme Court verdict following which a fresh warrant was issued to take over the property. The HC division bench said the proceedings under SARFAESI Act were not against the DCHL but against its owner T. Venkatram Reddy.
The bench said there was no error in the order of the HCMM in directing the Indiabulls to take over the property.
