Hc Attaches Nepc Micon Bank Accounts, Bars Asset Sale

The Delhi High Court has restrained NEPC Micon from selling its assets and has attached the company's bank accounts following a recovery suit filed against it by DCM Financial Services Ltd.

DCM Financial had filed a suit for recovery of Rs 2.26 crore and had moved the relevant sections under the criminal procedure code to also attach certain properties owned by the company.

The court's judgement is considered to be one of the most prompt in recent

times and signals the pro-active role high courts are beginning to take against defaulters, sources said.

The non-banking financial companies are saddled with huge non-performing assets. This is a very serious problem for us as it adversely affects our cash flow, an NBFC official said.

 

Sources said the non-banking financial companies normally settled for out-of-court settlements as litigations until now was a long-drawn-out process. But the courts are now coming down on defaulters. This is a welcome step as only the courts can help us recover our money, another NBFC source said.

Repeated attempts to obtain a reaction from Chennai-based NEPC Micon on the issue failed.

The Delhi High Court order against NEPC Micon said: It is ordered that the defendants (NEPC Micon and Raj Kumar Khemka) ... are hereby prohibited and restrained until further orders of this court from transferring or charging the properties of the defendants at No 36 Wallajah Road, Chennai, property bearing plot no 29, Industrial Estate, Ambattur, Chennai.

The court order also ordered the ... attachment of the bank accounts of defendant No 1 (NEPC Micon) at Karnataka Bank Limited, George Town, Chennai, and bank account at HDFC Bank Limited, Anna Salai, Chennai, specified by sale gift or otherwise and prohibited all persons from receiving the same by purchase, gift or otherwise.