Division Bench vacates stay on Dunlop winding up

Dunlop India was enjoying an interim stay on the winding up order until February 18

Division Bench vacates stay on Dunlop winding upDunlop India was enjoying an interim stay on the winding up order until February 18

Kolkata, Feb 18 (CMC) A Division Bench of Calcutta High court today vacated the stay on the winding up order of the beleaguered tyre-maker Dunlop India.
The Division Bench comprising, Justice Asim Banerjee and Justice Shukla Kabir Sinha, asked the official liquidator to take possession of all the assets of Dunlop India as per single-judge bench order on winding up of the company. The court today also asked the local administration in West Bengal’s Hooghly and Tamil Nadu’s Ambattur, where two plants of Dunlop are located, to cooperate with the official liquidator in this regard.
The official liquidator will carry on assessment of the company’s assets until any further order. A spokesperson of Dunlop India said, “We are yet to study the order. We are not in a position to comment at this moment.”
Dunlop India was enjoying an interim stay on the winding up order until today, after the company deposited Rs 10 crore with the court.
Earlier, on January 31, Justice Sanjib Banerjee of Calcutta High Court had ordered winding up of the company. It had directed the official liquidator to take immediate possession of all of the company’s assets and books of records, following an application from a Kerala-based partnership firm EV Mathai and Sons and many other creditors of the company.
Dunlop India used to enjoy a safeguard from its unsecured creditors under a state Act — West Bengal Relief Undertakings (Special Provisions) Act, until 2010. However, the relief undertaking status was withdrawn by the erstwhile Left Front government later. Mamata Banerjee-government too did not renew it.
Also, there has been no operation at both Sahagunj (West Bengal) and Ambattur (Tamil Nadu) plants of the company for over a year.