The Telegraph
Friday , March 30 , 2012
Since 1st March, 1999
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HC turns down Dunlop plea

Calcutta, March 29: A division bench of Calcutta High Court today declined to pass an interim stay on the appointment of a provisional liquidator to stop the Dunlop management from selling any asset of the company.

Justice Sanjiv Banerjee of Calcutta High Court had made the appointment as an interim order on Monday in relation to a case between Dunlop and Madura Coats.

Dunlop moved an appeal today before the division bench of Justice Kalyanjyoti Sengupta and Justice Jaymalya Bagchi, seeking a stay on Justice Banerjee’s order.

Dunlop’s appeal will be taken up for hearing on April 3.

The division bench also said that the provisional liquidator would act as a special officer and make an inventory of the assets kept at the Sahaganj factory in Hooghly.

“The special officer will have the liberty to hold discussions with the creditors of the company but he would not take any decision on his own regarding the payments due to the creditors,” the division bench order said.

The order also restrained the Dunlop management from removing any assets from its Sahaganj unit.

On Monday, a winding-up petition moved by Madura Coats came up for hearing before Justice Banerjee.

Madura Coats, which claims that Dunlop owes it Rs 2 crore, alleged that even though the winding-up petition had been pending before the high court, the Dunlop management had sold some property at Sahaganj.

During the hearing of the petition, the state government had assured assistance to reopen the company.