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Division Bench asks Dunlop to deposit Rs 10 cr

Source : BUSINESS_STANDARD
Last Updated: Mon, Feb 04, 2013 21:10 hrs
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A Division Bench of Calcutta High court on Monday said it would hear the Pawan Ruia group-controlled Dunlop India's plea challenging the single judge bench order on winding up of the company, subject to condition.

The Division bench of Calcutta High Court comprising Justice Girish Chandra Gupta and Justice Tarun Kumar Das asked the company to keep a deposit of Rs 10 crore with the court to get its appeal admitted.

Dunlop India counsel has been asked to brief the court on Wednesday about the company's response to the condition. The official liquidator will not act until the Wednesday.

When contacted, spokesperson of the Pawan Ruia group said, it would comment after getting counsels' advice.

Earlier on last Thursday, Justice Sanjib Banerjee of Calcutta High court directed the official liquidator to take immediate possession of all of company's assets and books of records, following an application from a Kerala-based partnership firm EV Mathai and Sons and 15 other creditors of the company. Workers' unions of Dunlop too supported the winding up petition.

In the order, Justice Banerjee observed, "Properties of value in excess of Rs 2,300 crore had been removed from the company without the company meeting the debts of its creditors or even offering the unpaid wages and salaries to its workmen and other employees."

Incidentally, 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 However, the relief undertaking status was withdrawn by the erstwhile Left Front later. Mamata Banerjee-government too did not renew it.

Operations at both Sahagunj (West Bengal) and Ambattur (Tamil Nadu) plants of the company have remained suspended for several moths.


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