The case involves an appeal against an order by the NCLT, Principal Bench, New Delhi, which upheld the Resolution Professional's decision to not include SREI Infrastructure Finance Limited as a member of the Committee of Creditors (CoC) for Deccan Chronicle Holdings Limited (DCHL). The Resolution Professional argued that SREI was a 'related party' due to holding more than 20% shares, which was contested by SREI, claiming it was a financial creditor having disbursed Rs. 240 Crores to DCHL.
SREI Infrastructure Finance Limited (Appellant) disbursed Rs. 240 Crores to Deccan Chronicle Holdings Limited (Corporate Debtor) for time value of money. DCHL converted a portion of this investment (Rs. 20 Crores) into 6,60,37,735 equity shares of Rs. 2 each at a premium of Rs. 1.18 per share, allotting them to SREI. The Resolution Professional considered SREI a 'related party' because it held more than 20% shares in DCHL. The allotment of equity shares to SREI was not recognized/accounted for in DCHL's books of accounts because the stock exchanges did not approve the allotment as per their guidelines. The NCLT upheld the Resolution Professional's decision, leading SREI to appeal to the NCLAT. DCHL's balance sheets as of March 31, 2016, March 31, 2017, and July 18,
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The Adjudicating Authority (NCLT, Hyderabad…
The impugned o…
The case involves an appeal against an order by the NCLT, Principal Bench, New Delhi, which upheld the Resolution Professional's decision to not include SREI Infrastructure Finance Limited as a member of the Committee of Creditors (CoC) for Deccan Chronicle Holdings Limited (DCHL). The Resolution Professional argued that SREI was a 'related party' due to holding more than 20% shares, which was contested by SREI, claiming it was a financial creditor having disbursed Rs. 240 Crores to DCHL.
SREI Infrastructure Finance Limited (Appellant) disbursed Rs. 240 Crores to Deccan Chronicle Holdings Limited (Corporate Debtor) for time value of money. DCHL converted a portion of this investment (Rs. 20 Crores) into 6,60,37,735 equity shares of Rs. 2 each at a premium of Rs. 1.18 per share, allotting them to SREI. The Resolution Professional considered SREI a 'related party' because it held more than 20% shares in DCHL. The allotment of equity shares to SREI was not recognized/accounted for in DCHL's books of accounts because the stock exchanges did not approve the allotment as per their guidelines. The NCLT upheld the Resolution Professional's decision, leading SREI to appeal to the NCLAT. DCHL's balance sheets as of March 31, 2016, March 31, 2017, and July 18,
…The Adjudicating Authority (NCLT, Hyderabad…
The impugned o…