HC directs Yudh Chand bains to deposit Rs 3 Cr as condition for interim relief in bank recovery -

Shimla, June 22

Himachal Pradesh High Court has directed social activist and businessman Yudh Chand Bains to deposit Rs 3 crore with the court registry as a prerequisite for consideration of interim relief in a petition challenging recovery proceedings initiated by the Kangra Central Cooperative Bank against his hospitality project in Manali.

A Division Bench comprising Chief Justice G.S. Sandhawalia and Justice Bipin Chander Negi issued the direction while hearing a petition filed by M/s Hotel Lake Palace and others against the Kangra Central Cooperative Bank and other respondents.

Appearing on behalf of the petitioners, senior advocate Arvind Sharma submitted that substantial quantities of raw material, including cut stone, were lying at the site of the under-construction “Himalaya Snow Village” hospitality project in Manali.

Referring to a valuation report, the petitioners contended that finished cut stone valued at approximately Rs 30.97 crore, along with additional stone intended for excavation and finishing work worth around Rs 32 crore, had been attached by the bank.

It was argued that the value of the attached material was sufficient to satisfy the outstanding dues if permitted to be sold under appropriate supervision.

The petitioners further submitted that the bank had attached assets of the hospitality project in connection with loan liabilities associated with the venture.

Petitioner maintained that the value of the attached materials and assets substantially exceeded the amount claimed by the bank.

Opposing the grant of interim relief, the Kangra Central Cooperative Bank informed the court that the valuation of the attached property remained disputed. The bank submitted that recovery proceedings were initiated following the borrower’s failure to meet repayment obligations and noted that a cheque of ₹2.50 crore issued towards the first instalment had been dishonoured. According to the bank, the recoverable dues amount to approximately ₹20 crore, and the petitioner had failed to honour earlier repayment commitments.

Advocate General Anup Rattan, appearing for the state authorities, also opposed the petition, submitting that the petitioner had not approached the court with clean hands. He informed the court that Bains had already been booked by the State Vigilance and Anti-Corruption Bureau in connection with alleged loan irregularities and accusations of overvaluation of assets furnished to secure credit facilities.

During the proceedings, counsel for the petitioners offered to deposit ₹3 crore before the court as evidence of their bona fides. Taking note of the statement, the High Court directed that the amount be deposited with the registry through demand draft or RTGS.

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The court further directed that records pertaining to proceedings before the Debt Recovery Tribunal (DRT) concerning securitisation measures related to the “Himalaya Snow Village” project be placed on record. The matter has been listed for further hearing on July 22.

The Bench clarified that no interim stay or protective relief has been granted to the petitioners at this stage.

The latest order follows Bains securing bail from the Himachal Pradesh High Court in a case registered by the State Vigilance and Anti-Corruption Bureau concerning alleged loan defaults and financial irregularities.

Both the recovery proceedings initiated by the cooperative bank and the related criminal investigations remain subject to judicial scrutiny.

It is worthwhile to mention that Mr Bains has moved in high court seeking leave against KCC notice to deposit Rs 20 Cr against his two loan he was got for Himalaya Snow village and a Mandi based hospitality unit.