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ABCL invokes Sick Industries Act to save Bachchan's bungalow

Baron Bachchan braves bad patch as ABCL falls sick

In an interesting twist to the Canara Bank petition, urging the attachment of superstar Amitabh Bachchan's bungalow Prateeksha at Juhu in north-west Bombay, Justice A P Shah of the Bombay high court today restrained the court receiver to take the possession of the bungalow for the time being.

Further hearing of the case will be held on June 22.

Earlier, Canara Bank had filed a writ petition in the Bombay high court and submitted that Bachchan had taken loan for his company, Amitabh Bachchan Corporation Limited, and it is in default of paying the loan amount of Rs 100 million to the bank.

The bank then moved court to recover the said amount from the guarantor, Bachchan and his wife, Jaya Bachchan. The bungalow is owned by them.

Bank officials prayed the court for attachment of the said property. On March 17, Justice A P Shah directed the court receiver to take possession of the bungalow, but before the court receiver could take the possession, ABCL was referred to the Board for Industrial and Financial Reconstruction.

ABCL counsel Shekhar Naphade submitted that since the reference is made to BIFR and it is registered, as per section 22 of the Sick Industries Act, the court receiver should be restrained from taking possession of the bungalow.

In previous hearings, ABCL has submitted that it has already mortgaged the bungalow to Sahara India Finance Limited to raise finance for his company.

Justice Shah, after hearing counsel for Bachchan, restricted ABCL from selling off his property to any other party till the bank petition was disposed of.

He also suggested that both the parties should go for out-of-court settlement. The suggestion was given when the counsel submitted that his client will be able to pay the entire debt to canara bank in a specific period.

UNI

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