HCA Gets a Breather Ahead of World Cup: HC Defreezes Properties, Accounts
HYDERABAD: The Telangana High Court on Friday released from attachment the assets of Hyderabad Cricket Association (HCA) and allowed its financial transactions by defreezing bank accounts with Canara Bank.
Following a commercial tussle between HCA and Visaka Industries to the tune of '40 crore, a trial court in Rangareddy district last week attached the association’s assets. HCA administrator and former Supreme Court judge, Justice L. Nageswara Rao (retd) moved the High Court challenging the attachment order on Thursday.
The bench of Chief Justice Alok Aradhe and Justice N.V. Shravan Kumar heard the petition and passed a release order on the condition that HCA will pay '17.5 crore as part payment of the arbitral award given in favour of Visaka Industries.
Further, the association was prohibited from creating any third-party interests on its immovable and movable properties.
Senior counsel Raja Sripathi Rao, appearing for the HCA, argued that the commercial court of Rangareddy district had passed attachment orders unilaterally. The Supreme Court has restrained all district courts from passing any orders against the HCA, as a single-member committee was scrutinizing the anomalies in the HCA’s earlier management.
Counsel also submitted that Visaka Industries chief G. Vivekanand was HCA president from 2017 to 2018. Although the arbitration award was passed in 2016, Visaka Industries filed an execution petition, just before the commencement of cricket World Cup.
He found fault with the attachment order given by the trial court, which has the potential to block World Cup matches, which Hyderabad is hosting.
Senior counsel Sunil Ganu appeared for Visaka Industries and said that the case was not an overnight development as the tussle has been going on for the last seven years. The HCA purposefully ignored it to avoid making payment to us, he said.
In response, HCA counsel assured the court that 50 per cent of the decreed amount would be paid within six months. They also highlighted that Hyderabad was scheduled to host three World Cup matches and requested the court to defreeze HCA's properties and bank accounts to make necessary arrangements for these cricket matches.
Considering the both sides' contentions, the bench defreezed the bank account and other assets and directed HCA to deposit Rs 17.5 crore before the commercial court within six weeks.
