Dunlop winding up: Co told to deposit Rs 10 crore by HC

A division bench of the Calcutta High Court today directed Dunlop to deposit Rs 10 crore before it by Wednesday, failing which it would not consider the company's plea for a stay on the winding up order passed by a single bench on January 31.

The division bench of Justices Girish Chandra Gupta and Tarun Kumar Das also restrained the official liquidator from taking action —- in accordance with the order passed by Justice Sanjib Banerjee —- within the next two days.

Earlier, the Dunlop counsel, while moving the petition before the bench, submitted that the Ruia Group was ready to deposit Rs 1 crore to prove its earnestness for revival of the country's oldest tyre manufacturing company. But the bench told the Dunlop counsel that it would hear the petition only if Rs 10 crore was deposited.

Moving the petition challenging Justice Sanjib Banerjee's order to wind up the ailing company, counsel of Dunlop advocate Utpal Basu today pleaded that a total of 16 companies filed a winding up petition to get back their dues amounting to Rs 51 crore. However, Dunlop had already settled claims of Rs 37 crore by negotiating with those companies through a mediator. But in December, 314 current employees and retired employees had come up with their claims in the high court, said Basu. It was revealed that their claims amounted to Rs 77 crore.

During the hearing, the counsel of a creditor said Dunlop had fraudulently sold its assets after being taking over by the Ruia group and money did not come to the company. Assets worth Rs 2,300 crore had been sold by Dunlop, said the counsel. The division bench then asked Dunlop to deposit of Rs 10 crore, after which it would consider the stay order.

The case will come up for hearing on Wednesday.

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