Calcutta, April 8: Ruia Cotex, the company that shot into limelight by buying Jessop & Co from the Centre, has received a let off from Calcutta High Court.

In January 2002, Corporation Bank moved the Debt Recovery Tribunal (DRT) accusing Ruia Cotex of defaulting in loan repayment and filed a recovery suit.

In 2003, the bank submitted to the DRT that it has declared Ruia Cotex as a wilful defaulter and has informed the RBI accordingly. Following this, Ruia Cotex, which is into textiles, filed an application with DRT asking for cancellation of the bank’s notification.

In January 2004, DRT set aside the bank’s declaration as arbitrary and bad in law and directed the RBI to remove Ruia Cotex from the list of wilful defaulters.

The bank then appealed to the Debt Recovery Appellate Tribunal (DRAT), Calcutta against the order of DRT.

DRAT said DRT had no jurisdiction of passing the order, but refrained from commenting on its merit.

Ruia Cotex then filed a revised application with Calcutta High Court. The court has upheld the order passed by DRT. Justice Prabuddha Shankar Banerji said the bank’s intimation to the RBI and others is bad in the eyes of law. Group chairman P.K. Ruia has expressed happiness at the development.