HC directs deposit of proceeds of sale of DC with ICICI bank

The order was passed by Justice S J Kathawalla while hearing an application filed by Tata Capital against Deccan Chronicle Holdings Ltd (DCHL), owners of Deccan Chargers, for recovery of a Rs 101 crore loan.

Counsels Janak Dwarkadas and Ashok Paranjpe, appearing for Tata Capital, argued that there should be transparency in the bidding process.

"BCCI has claim of only five per cent of the sales proceeds. The remaining amount is available for creditors of Deccan Chronicles," they argued.

After accepting their contention, Justice Kathawalla directed that the sale proceeds to be deposited with ICICI bank after paying five per cent to BCCI. The auction is to be opened on September 13 in Chennai.

"The auction is directed to be conducted under the supervision of M D Narvekar, official assignee of the high court. The sales proceeds received from the sale of the IPL team known as Deccan Chargers shall be deposited with the ICICI bank after paying five per cent to BCCI. The amount deposited with the ICICI bank shall not be disbursed or appropriated without permission of this court," Justice Kathawalla ordered.

The matter has been posted for further hearing on September 17.

Tata Capital had moved the application today in an arbitration petition filed by them against DCHL for recovery of their loan amount of Rs 101 crore.

According to the petition, a term loan had been sanctioned by Tata Finance to DCHL which it allegedly defaulted in repaying. A notice was served and it promised to repay the loan within the specified period.