Calcutta HC interim relief to Dunlop India till Feb 18

Pawan Ruia controlled-company had agreed to deposit Rs 10 cr

A Division Bench of Calcutta High (HC) Court today extended the interim relief to Dunlop India, after Pawan Ruia controlled-company agreed to deposit Rs 10 crore as per court's direction.

This means the official liquidator will not act until February 18, the day the High Court will consider a stay on the single-judge Bench order winding up of company.

Earlier, the Division Bench of Calcutta High Court, comprising Justice Girish Chandra Gupta and Justice Tarun Kumar Das, asked the company to deposit Rs 10 crore before it considers a stay  on winding up of the company.  Dunlop India will deposit the amount by next Monday.

Last week, Justice Sanjib Banerjee of Calcutta High Court directed the official liquidator to take immediate possession of all of company's assets and books of records, following an application from a Kerala-based partnership firm EV Mathai and Sons and many other creditors of the company.

Dunlop India used to enjoy a safeguard from its unsecured creditors under a state Act -- West Bengal Relief Undertakings (Special Provisions) Act, until 2010. However, the relief undertaking status was  withdrawn by the erstwhile Left Front later. Mamata Banerjee-government too did not renew it.

Operations at both Sahagunj (West Bengal) and Ambattur (Tamil Nadu) plants of the company have remained suspended for over an year.