Chandigarh: The petition filed by employees of the Hotel Park Plaza seeking quashing of the order passed by UT District Magistrate and notice on taking over the hotel’s physical possession was dismissed as withdrawn on Wednesday.
It is mentioned that a Division Bench comprising Justice S S Saron and Justice Lisa Gill on the previous date of hearing had made it clear that the possession of the hotel will continue to remain with secured creditors or the banks.
As a result of this, the possession of the hotel will remain with banks or secured-creditors.
Bench dismissed the contentions of the hotel management keeping in view the decision of the Debts Recovery Tribunal-I (DRT), Chandigarh of August 29 on a management application. The court asked the objections if any before the DRT or any other bench.
Appearing for the hotel, senior advocate Anand Chhibbar had contended that the District Magistrate had not supplied a copy of the order regarding taking over of possession by the secured-creditors. Chhibbar alleged that possession of the hotel is “illegal.” He said no inventory of the article in the hotel was made.
The developments took place a day after Debts Recovery Tribunal-I (DRT), Chandigarh, criticised banks officials for their action. The DRT had dismissed the interim application filed by the hotel management for advancing the matter. The DRT had also said that action by banks could have been avoided.
Opposing the contentions of the senior advocate Anand Chhibbar, counsel for the banks senior advocate Anupam Gupta and senior advocate Puneet Bali said that the banks had acted according to the rules. They said that as per the section 14 of the SARFASI Act, 2002 the district magistrate can seal the properties.
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