5 June 2019: The Mumbai bench of the National Company Law Tribunal (NCLT) on Tuesday said the BSE-listed real estate developer will have to pay Rs 98 crore to Bank of India within four weeks. HDIL owes around Rs 520 crore to Bank of India and it had agreed to pay it in tranches.
The company is facing insolvency petitions filed by Bank of India, Corporation Bank and Syndicate Bank among other lenders.
“There was a one-time settlement (OTS) and the firm was supposed to get money from a cooperative bank to repay as per the OTS schedule, but due to the election the bank delayed giving us money,” senior counsel Navroz Seervai told NCLT, appearing for the builder. “There are several lenders and so far, the company has paid about Rs 800 crore to its lenders which shows that the company is genuine. However, the company is now seeking a mere four weeks to pay the dues as per the schedule.”
Rohan Agrawal of MDP & Partners, who represented Bank of India, argued that the first case was filed in 2018 and the company had given an undertaking that it will settle it through OTS. The bank had to file a fresh case because the company had failed to do so, he said. Other public-sector banks including Syndicate Bank (Rs 57 crore), Union Bank of India (Rs 15 crore), Corporation Bank (Rs 7.42 crore) and Dena Bank (Rs 2.75 crore) have filed separate petitions under Section 7 of the Insolvency and Bankruptcy Code (IBC) against HDIL to recover their dues.
After hearing the arguments, the division bench comprising Bhaskara Pantula Mohan and V Nallasenapathy had granted four weeks to HDIL to repay Rs 98 crore to Bank of India and around Rs 10 crore to Syndicate Bank as per schedule. The tribunal has adjourned the case to July 4.
Cases filed by Corporation Bank, Union Bank of India and Dena Bank will be heard on June 26. Last year, the company had settled two similar bankruptcy petitions filed by Jammu & Kashmir Bank and Andhra Bank by paying about Rs 334 crore and around Rs 40 crore, respectively.
An email to HDIL remained unanswered as of press time Tuesday.
The company, known for slum rehabilitation projects in Mumbai so far, has total debt of Rs 1,996.43 crore.
In a recently held an investor conference call, HDIL announced that it has reduced debt this year by 18.3% on a consolidated basis and by 20% on a standalone basis, in line with its guidance.