High Court stays taking over of Hotel Holiday Inn

Summary: Saurabh MalikTribune News ServiceChandigarh, June 17Issuing a notice of motion for August 19 to the Panchkula District Magistrate and two nationalised banks, a vacation Bench of the Punjab and Haryana High Court today stayed the taking over of Hotel Discount Holidays © Holiday Inn. There is a threat of physically taking over of the hotel and if it is so done, chances of debt restructuring will simply lapse, Chhibbar contended. Chhibbar added that the move lead to excess charging of interest of Rs 40.59 crore, including Rs 33.81 crore by the PNB and Rs 6.78 crore by the OBC. The hotel was formerly functioning as Hotel KC Royal Park. The court was also told that the respondent-banks had twice put the property on sale by auction each time at reduced rate. Saurabh Malik Chandigarh, June 17 Issuing a notice of motion for August 19 to the Panchkula District Magistrate and two nationalised banks, a vacation Bench of the Punjab and Haryana High Court today stayed the taking over of Hotel Discount Holidays © Holiday Inn. The Bench made it clear that the order was subject to deposition of Rs 75 lakh by June 22.

The petitioner was also asked to re-negotiate with the banks. The development before the Bench of Justice M Jeyapaul and Justice Amit Rawal is significant as the five-star hotel in Sector 3, Panchkula, was to be set up at a cost of Rs 130.29 crore by Walia Traders Limited. The petitioner, through senior advocate Anand Chhibbar, told the court that the respondent-banks had initially agreed to finance the project at 9.75 per cent per annum interest.

However, the banks raised it to 16.50 per cent per annum, which caused great prejudice to the petitioner.

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