DRT stays Tulip Star sale

The Debt Recovery Tribunal (DRT) II has issued an injunction against the sale of Tulip Star (formerly Juhu Centaur Hotel) on a plea by Vijaya Bank for recovering more than Rs 24 crore in dues.

The 24,706 sq m hotel is currently owned by Tulip Hospitality Services (THS).

The DRT also issued showcause notice to THS asking why the order should not be made absolute. Vijaya Bank has been permitted by the court to issue a general public notice to alert prospective buyers of the hotel.

The order seeks to protect THS's dues to Vijaya Bank worth Rs 24 crore, in addition to an aggregate of 129 crore and interest owed as per claims by other banks.

"The interim relief in respect of movable shall come into force in respect of the property that may be found in the inventory to be taken within two months by (Vijaya Bank's) officer by issuing notice to the defendants. Reports of the inventory are to be submitted to the tribunal," the order states.

The DRT II has, however, permitted THS to "deal with, in the regular course of business, hypothecated movable property subject to maintaining its stock value."