Calcutta, Feb. 4: Calcutta High Court today told Dunlop to show that it has “at least Rs 10 crore in its hand” in two days before the bench hears its plea on the stay the company has sought on the wind-up order.
The bench also directed the official liquidator, appointed on January 31 by a single-judge bench, not to act against the ailing tyre maker during this period.
“The company (Dunlop) will have to show us that it has at least Rs 10 crore in its hand within two days. The bench will then hear its petition demanding a stay on the trial court’s verdict,” Justices G.C. Gupta and T.K. Das said in their order today.
“The official liquidator is directed not to act on the basis of trial court’s order, which had asked him to take over the possession of the assets of the company with immediate effect,” the court added.
On February 1, Justice Sanjib Banerjee of the high court trial bench had ordered the winding up of Dunlop India Ltd and directed the official liquidator to take over the assets of the company with “immediate effect”.
Dunlop had moved an appeal against the order before the division bench prayed for an interim stay.
The company lawyer had requested the court that its client would show a document of having Rs 1 crore in hand, but the bench declined to accept the proposal.
The trial bench had delivered the February 1 judgment after creditors moved a winding-up petition against the company. According to an estimate, Dunlop owes Rs 1,000 crore to 17 creditors, including Rs 50 crore to the Bengal government.