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Informist, Friday, Dec. 19, 2025

 

--NCLT Hyderabad declares Deccan Chronicle former chairman Reddy bankrupt 

--CONTEXT: NCLT order on personal guarantor insolvency plea by L&T Finance 

 

By Surya Tripathi

 

NEW DELHI – The Hyderabad bench of the National Company Law Tribunal Friday declared Deccan Chronicle Holdings Ltd.'s former chairman T.V. Reddy bankrupt in personal guarantor insolvency proceedings filed by L&T Finance Ltd. on dues of INR 756.06 million. The tribunal appointed Renuka Devi Rangaswamy as Reddy's bankruptcy trustee to carry out functions as per the Insolvency and Bankruptcy Code, 2016. Reddy was the personal guarantor for financial facilities provided to Deccan Chronicle by L&T Finance.

 

"...there being no repayment plan submitted by the personal guarantor or any material indicating resolution of the insolvency, this tribunal finds it just and proper to order the commencement of bankruptcy proceedings against the personal guarantor in accordance with the provisions of the IBC (Insolvency and Bankruptcy Code), 2016," said a bench of judicial member Rajeev Bhardwaj and technical member Sanjay Puri.

 

In 2013, L&T Finance had given a term loan of INR 250 million to Deccan Chronicle Holdings. Reddy was personal guarantor for the loan. Following the default by Deccan Chronicle Holdings and an arbitral award in 2013 directing the company and Reddy to jointly and severally pay INR 250.26 million, along with interest at 15% per annum from 2012, L&T Finance moved the tribunal.

 

In 2017, the tribunal admitted Deccan Chronicle Holdings into insolvency. In 2019, it approved SREI Multiple Assets Investments Trust and Vision India Fund's resolution plan. However, as Reddy's debt was not fully resolved under the insolvency proceedings, L&T Finance had issued a demand notice in 2020 to the personal guarantor demanding payment of the amount.

 

Since no repayment was made, L&T Finance filed a petition for initiation of the individual insolvency resolution process against Reddy, which the tribunal admitted in 2022. On his failure to submit a resolution plan, L&T Finance filed an application to initiate bankruptcy proceedings against him.

 

Friday, shares of L&T Finance Ltd. ended slightly higher at INR 300.30 on the National Stock Exchange.  End

 

Edited by Rajeev Pai

 

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