Litigation delays resolution even outside insolvency code ambit

MUMBAI: Not just in insolvency cases, litigations have also held up recoveries in stressed assets where resolutions are being attempted outside the purview of the Insolvency and Bankruptcy Code. For instance, Bank of Baroda, the lead lender to Reliance Home Finance Ltd moved the Delhi High Court on 3 March against a November 2019 stay order coming in the way of its stress resolution. The public sector lender sought vacation of the stay order passed in favour of Always Remember Properties Private Ltd, a Shapoorji Pallonji Group company. Always Remember Properties had provided ₹200 crore to Reliance Home Finance under an inter-corporate deposit agreement in 2019 and when the latter defaulted on repayments, the company moved court, seeking its dues. According to Bank of Baroda’s petition, a copy of which has been reviewed by Mint, while Reliance Home owes ₹11,336 crore to lenders, the Shapoorji company has claimed ₹217.92 core.