The Delhi High Court has directed Ansal Properties and Infrastructure Ltd. to maintain the status quo on its unencumbered assets following a petition by Debenture Trustee Vistra ITCL. This order, aimed at enforcing a previous Arbitral Tribunal ruling requiring security of INR 503 crore, prohibits any dealings with these assets. A follow-up hearing is scheduled for January 2025 to assess further developments in the case.
The Delhi High Court recently mandated that Ansal Properties and Infrastructure Ltd. maintain the status quo on all its unencumbered assets. This directive was issued in response to a petition from Debenture Trustee Vistra ITCL, which represents the interests of debenture holders. The petition sought to enforce a prior ruling from an Arbitral Tribunal, which had ordered Ansal Properties to provide security amounting to INR 503 crore.
During the proceedings, Justice Jasmeet Singh highlighted the necessity for Ansal Properties to preserve the status of its unencumbered assets as of the present day. The court has scheduled a follow-up hearing for January 2025 to assess the case further and review any developments that may arise in the interim. Following this directive, Ansal Properties is explicitly prohibited from engaging in any transactions concerning its unencumbered assets, starting immediately.
This judicial order aims to ensure that Ansal Properties complies with the tribunal's ruling while safeguarding the interests of the debenture holders throughout the ongoing legal proceedings. Representing Vistra ITCL was Advocate Sidhant Kumar, while Senior Advocate AshwKumar Mata appeared on behalf of Ansal Properties. Vistra ITCL initiated these proceedings to recover dues based on a Corporate Guarantee executed by Ansal Properties in favour of the trustee.
In a related context, the Delhi High Court previously appointed former Supreme Court Judge Justice M.R. Shah was the sole arbitrator to address disputes between Vistra ITCL India Limited and Ansal Properties & Infrastructure Limited. The central issue in this dispute pertains to a project undertaken by Ansal Properties for the development of a group housing project spanning 41.16 acres in Ghaziabad, Uttar Pradesh. This project is being executed by Ansal Urban Condominiums Private Limited, which serves as the principal borrower in this matter.
The developments surrounding this case reflect the complexities involved in real estate finance and the importance of adhering to legal obligations to protect stakeholder interests. As the situation progresses, all eyes will be on the upcoming court hearing to gauge the future implications for Ansal Properties and its financial commitments.
In light of this ruling, the court's emphasis on protecting the interests of debenture holders underscores the critical nature of compliance in financial matters. The outcome of the upcoming hearing may significantly impact Ansal Properties' operations and financial strategies moving forward. Stakeholders will be closely monitoring the developments to understand how this situation unfolds in the coming months.
Advertisement
Facebook
Whatsapp
