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The Supreme Court has upheld IFCI’s action -- under the SARFAESI-law -- of sale of luxury property Park Hyatt Goa to diversified conglomerate ITC, setting aside a Bombay High Court order. The judgement was pronounced by a bench comprising Justices S.A. Bobde and L Nageshwara Rao here on Monday.
Both ITC and IFCI had filed separate appeals against the Bombay High Court order quashing the sale of Park Hyatt in Goa to ITC. Blue Coast Hotels, the original owner of Park Hyatt Goa, had approached the Bombay High Court in appeal against lender IFCI’s move to sell this Goa luxury property to ITC.
In his immediate reaction to the apex court judgement, V Satyavenkata Rao, Executive Director, IFCI, told BusinessLine that the judgement was “welcome” and can have far reaching implications as it empowers secured creditors in the system to effectively invoke measures under the SARFAESI Act for recovery of dues.
It may be recalled that ITC had emerged as the highest bidder of the luxury property at Goa in February 2015 and had made a Rs 515-crore offer. IFCI had a few years back recognised in its profit and loss account about Rs 310 crore (its share) as revenues from the sale of this Goa property. Technically, the latest apex court order will have no adverse impact on the lender’s balance sheet, say company observers.
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