Delhi High Court Orders Ansal Properties to Maintain Asset Status Quo
The Delhi High Court has directed Ansal Properties and Infrastructure Ltd. to maintain the status quo on all its unencumbered assets. This order was issued following a petition by Debenture Trustee Vistra ITCL, representing debenture holders, to enforce an Arbitral Tribunal’s order. The tribunal required Ansal Properties to provide security worth Rs 503 crores.
Justice Jasmeet Singh emphasized that Ansal Properties must not alter its unencumbered assets. The next hearing is set for January 20, 2025, to assess further developments. The court’s directive aims to ensure compliance with the tribunal’s ruling and protect debenture holders’ interests during ongoing legal proceedings.
Advocate Sidhant Kumar represented Vistra ITCL, while Senior Advocate Ashwani Kumar Mata appeared for Ansal Properties. Vistra ITCL seeks to recover dues under a Corporate Guarantee by Ansal Properties. Last year, the Delhi High Court appointed former Supreme Court Judge Justice M.R. Shah as the sole arbitrator in a dispute involving a 41.16-acre group housing project in Ghaziabad, Uttar Pradesh, executed by Ansal Urban Condominiums Private Limited.
Doubts Revealed
Delhi High Court -: The Delhi High Court is a big court in India that makes important legal decisions for the city of Delhi. It helps solve disputes and make sure laws are followed.
Ansal Properties -: Ansal Properties and Infrastructure Ltd. is a company in India that builds houses and other buildings. They are involved in a legal case about a housing project.
Status Quo -: Status quo means keeping things the same as they are now. The court wants Ansal Properties to not change anything about their assets.
Unencumbered assets -: Unencumbered assets are things that a company owns that are not tied up with loans or debts. They are free to use or sell.
Vistra ITCL -: Vistra ITCL is a company that helps manage financial things like investments. They are representing people who have invested money in debentures.
Debenture holders -: Debenture holders are people who have lent money to a company by buying debentures, which are like IOUs. They expect to get their money back with interest.
Arbitral Tribunal -: An Arbitral Tribunal is a group of people who help solve disputes outside of court. They make decisions like a judge would.
Rs 503 crores -: Rs 503 crores is a large amount of money in Indian currency, rupees. One crore is equal to ten million rupees.
Ghaziabad -: Ghaziabad is a city in the Indian state of Uttar Pradesh. It is near Delhi and is known for its industries and housing projects.
Justice M.R. Shah -: Justice M.R. Shah is a judge who is helping to solve the dispute in this case. He is acting as an arbitrator, which means he helps make fair decisions.
