HC asks Dunlop India Ltd to deposit Rs 10 Cr in two days
Kolkata, Feb 4 : The Calcutta High Court today restrained the official liquidator to take immediate possession of Dunlop India Limited asking the tyre manufacturing company to deposit a sum of Rs 10 crore to the court in two days.
The two-judge bench comprising Justice Girish Gupta and Justice Tapan Das issued the directive on an appeal moved by the Ruia Group seeking a stay on Thursday's single-bench order to wind up the company for non-payment of dues amounting to nearly Rs 1,000 crore.
The division bench held the hearing of Ruia Group's appeal seeking a stay on winding up of the company, which would begin only after the company deposits a sum of Rs 10 crore before the registrar of the court in two days.
The single-judge bench of justice Sanjib Banerjee on Thursday had asked the liquidator to take immediate possession of the company's assets and books of records of the company and wind it up to meet dues of the creditors.
Justice Banerjee had also refused to entertain an appeal of Dunlop India Limited to stay operation of the order.
The court passed the order after E V Mathai and Sons and A K Kundu and Company, followed by 15 other creditors, moved a winding up petition before the High Court seeking liquidation of the company in 2008 for non-payment of dues amounting to around Rs 1,000 crore.
Advocate General Anindya Mitra, pleading for the state, had submitted before the court that the state, which also had claims of around Rs 50 crore, would welcome any order that could facilitate the reopening of the company.
The company, once leader of the tyre manufacturing industry, plunged into crisis since the late 1990's.
In 2005, the Ruia Group led by Pawan Kumar Ruia took control of DIL.
Dunlop India Limited had set up its first factory at Sahaganj near Kolkata in 1936.