Drt Vacates Order On Shcil

The Kolkata debt recovery tribunal (DRT) today vacated the interim order, passed on January 8, 2002, wherein it had attached the assets of Stock Holding Corporation of India (SHCIL). However, the bank is planning to challenge the DRT's order in the appellate tribunal.

Jishnu Saha, the counsel for SHCIL confirmed that the debt recovery tribunal has vacated the interim order attaching SHCIL's properties and told IndusInd Bank that the merits of case did not warrant the protection it had sought through attachment. However, the interim order of attachment on Biyani continues, the counsel said.

The main hearing of the suit will continue under which IndusInd is seeking recovery of money from SHCIL.

The DRT confirmed the attachment of the properties of Kolkata broker Harish Chandra Biyani, and vested the bank with right to sell these properties, IndusInd said in a media statement.

DRT has upheld the right of IndusInd Bank to proceed against SHCIL for recovering the amount of cheques aggregating Rs 24.40 crore issued by SHCIL. The DRT observed that IndusInd Bank has a strong prima facie case to initiate civil and criminal proceedings against SHCIL in DRT and other courts of law.