Monday 18 November 2013

Supreme court Stays, Calcutta HC's Winding -Up Order

13 Jun 2013 

The Supreme Court on Monday stayed the Calcutta High Court order on winding up of ailing tyre manufacturer Dunlop India. However, it asked the country's oldest tyremaker not to sell or create any third-party rights in its properties.
A bench headed by Justice Gyan Sudha Mishra stayed the HC order that directed the company, which had set up its first factory at Sahaganj near Calcutta in 1926, to wind up and pay off its creditors.

The HC had also directed the official liquidator to take 'immediate possession' of the assets of Dunlop India, which has facilities in Sahagunj in West Bengal and Ambattur in Chennai. Neither of these has been in operation since 1998.
The order came after Dunlop argued that another bench of the apex court had ordered status quo in February in a related petition filed by Kanti Commercials.
Pawan Kumar Ruia, the chairman of the group, had taken over Dunlop from the late Manohar Rajaram Chhabria's Jumbo Group in 2005. By then, it was already in considerable financial stress and was seeking protection from creditors.
Both the factories of this one-time blue-chip company, at Sahagunj in Hooghly and Ambattur in Tamil Nadu, are closed now.


Senior counsel Abhishek Manu Singhvi, appearing for the Ruia group company, claimed that the management is genuinely trying to revive and run the factories as it has already cleared dues to 10 out of its 16 creditors, and repaid R39.73 crore out of its total debt of R52 crore between July 2012 and January 2013. Besides, Dunlop had deposited R10 crore in the company court, he added. According to the firm, the remaining claims were under bona fide dispute and pending in the courts, and required to be established in a competent judicial forum.

No comments:

Post a Comment