Housing & Urban Development Corporation standalone net profit rises 26.90% in the December 2018 quarter
State-owned HUDCO Monday approached the NCLAT to recover its Rs 60 crore loan plus interest from Vikram Bakshi, who has agreed for an out-of-court settlement with McDonald's ending their six-year long dispute.
Counsel for HUDCO filed an intervention application before a two-member bench of the National Company Law Appellate Tribunal (NCLAT), headed by Chairperson S J Mukhopadhyay, pleading that its dues should be cleared first from the amount that Bakshi was to receive from the US fast food chain.
The state-owned firm pleaded before the bench that it has the first right over the amount to be received by Bakshi under the settlement agreement with McDonald's. Balance amount, if any, after clearing its dues could be transferred to him.
HUDCO claims that it had given Rs 60 crore loan to Bakshi for his hospitality company, Ascot Hotels Pvt Ltd and the loan account turned into NPA (non performing asset).
Bakshi's counsel declined to comment.
In 2013, Housing and Development Corporation Ltd (HUDCO) had filed a criminal case under the Negotiable Instruments Act against Bakshi in a 2012 cheque bounce case and said its dues owed to Bakshi had crossed Rs 75 crore.
HUDCO had also filed cases against Bakshi under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act.
The NCLAT is expected to pass on order on May 15 over the out-of-court settlement between Bakshi and McDonald's.
Earlier on May 6, estranged partners McDonald's and Bakshi told the NCLAT that they were working towards an out-of-court settlement to end their dispute.
Subsequently, on May 9, they announced an out-of-court settlement with the US fast food chain agreeing to buy Bakshi from their joint venture that operated outlets of the chain in north and east India.
The details of the pact, including financial terms, were not disclosed.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)