UVARCL takes possession of Electrosteel Castings Limited's Elavur land

Electrosteel Castings Limited had mortgaged its Elavur land in favour of one of the lenders of Electrosteel Steels Limited ('ESL'). Despite the discharge of the entire financial debt of ESL, pursuant to a resolution plan in the Corporate Insolvency Resolution Process ('CIRP') of ESL through a combination of cash and allotment of equity shares, the lender in whose favour the Elavur land was mortgaged sought to assign its alleged loan account in favour of UV Asset Reconstruction Co. Ltd ('UVARCL').

UVARCL took Symbolic Possession of Elavur Land on 19th June 2019 which was disputed & challenged by the company at Hon'ble Madras High Court. The Company filed application at Debt Recovery Tribunal (DRT) Chennai for quashing of actions taken by UVARCL.

Hon'ble ORT Chennai vide order dated: 8th April 2022 made available on website of DRT on 27th April 2022 evening, had dismissed the Company's application. The Company will contest the same before appropriate forum in due course.

Shares of Electrosteel Castings Limited was last trading in BSE at Rs. 39.15 as compared to the previous close of Rs. 39.95. The total number of shares traded during the day was 195608 in over 972 trades.

The stock hit an intraday high of Rs. 40.10 and intraday low of 38.75. The net turnover during the day was Rs. 7706570.00.

Source : Equity Bulls

Keywords

ElectrosteelCastings INE086A01029 ElavurLand Possession