HYDERABAD: Karvy Stock Broking Ltd got relief from the Telangana High Court, which issued an order staying ICICI Bank’s petition moving the Debt Recovery Tribunal (DRT) to recover dues.
It may be noted that ICICI Bank had moved to the DRT early this month and the Hyderabad DRT asked Karvy to repay dues within 15 days, failing which the firm’s properties will be attached. It also restrained Karvy from any transfer of these assets.
In response, Karvy moved to the high court challenging the DRT’s impugned order, which the high court last week stayed citing it as arbitrary and unreasonable.
The high court has also directed ICICI Bank to file its responses by next month. The private lender has an exposure of Rs 642 crore to Karvy, which maintained that there has been no default at least as on October 2019.
ICICI Bank along with three other lenders including Bajaj Finance Ltd, HDFC Bank and IndusInd Bank originally approached the Securities Appellate Tribunal for relief against the Securities and Exchange Board of India order, but the tribunal dismissed their petitions and instead asked the markets regulator to hear the matter.