HLV Ltd receives favorable order on claims

HLV Ltd had entered into an MOU on 9th April, 2014 with PBSAMP Projects Private Limited (PBSAMP) for sale of land owned by the Company in Hyderabad admeasuring 3 acres and 28 guntas for a consideration of Rs.85 crores. As per the MOU, the Company had agreed to settle all pending litigations on the land and obtain permission under the Urban Land Ceiling Act (ULC) for change in land usage from hotel to residential and for permission to alienate the land within 180 days from the date of MOU. As per the MOU, PBSAMP had advanced Rs.15.5 crores to the Company and the Company settled two claims out of this amount. However, the Company could not settle remaining claims and could not get permission from the State Government under the Urban Land Ceiling Act (ULC) for change in land usage and to alienate the land. At present, there are several suits pending in the City Civil Court against the Company, wherein the Plaintiffs claim to be the owners of certain portion of the aforesaid land.

PBSAMP terminated the MOU on completion of 180 days from the date of MOU and demanded refund of Rs.15.5 crores together with interest @ 21% per annum. Since the Company could not make payment, they initiated legal proceedings against the Company and secured an arbitral award in their favour. As per the arbitral award dated 8th September, 2019 an amount of Rs. 35 Crores inclusive of interest needs to be paid to the Claimant within 90 days of the award. The Company has filed an appeal under section 34 of the Arbitration and Conciliation Act, 1996 against the said impugned award before City Civil Court at Hyderabad which was dismissed. PBSAMP filed an Execution Petition before the City Civil Court, Hyderabad for execution of the said arbitral award.

Further, the Company entered into an MOU with Venkateshwara Constructions to sell the land on "as is where is basis" where the purchaser has to settle all disputes, including the final claims of PBSAMP through Court and PBSAMP has increased its claim through the Court claiming compound interest. Besides there are other claimants who are claiming the land rights which are now in court.

An amount of Rs.44,42,05,254/- had been paid to PBSAMP as per Judgement Debtor. The matter was pending before the City Civil Court in Hyderabad.

An order in favour of the Company has been received from "Principle Special Court in the Cadre of District Judge for Trial and Disposal of Commercial Disputes at Commercial City Civil Court, Hyderabad" wherein the Court ordered that "PBSAMP is not entitled for the compound interest as claimed and the amount of Rs.44,42,05,254/-paid by the Company to PBSAMP is in full satisfaction of the award".

Shares of HLV LIMITED was last trading in BSE at Rs. 29.41 as compared to the previous close of Rs. 29.24. The total number of shares traded during the day was 268446 in over 1542 trades.

The stock hit an intraday high of Rs. 29.69 and intraday low of 28.86. The net turnover during the day was Rs. 7867995.00.

Source : Equity Bulls

Keywords

HLV INE102A01024 Dispute FavorableOrder