HC restrains Vishal Retail from selling assets

The Delhi High Court has restrained Vishal Retail from disposing of its assets till further orders, on a plea filed by the Singapore-based DBS Bank to wind up the debt-ridden retail chain.

Passing an interim order, Justice S K Mishra has directed Vishal Retail not to sell or dispose of its assets till November 25, the next date of hearing and to submit details of its properties.

The court also issued notices to the debt-ridden retailer directing it to file its reply over the plea that why the company should not be wound up for defaulting the payment to DBS Bank.

"Till the next hearing, Vishal shall not alienate or otherwise encumber its assets," said Justice Mishra in his order on May 11 directing the retail firm to submit its last three audited balance sheets.

Justice Mishra has also directed Vishal Retail to file an affidavit disclosing its all assets with detailed information of their locations and value. He also asked the firm to give details in which name (personal) the properties are held along with date of their acquisition.  The court also directed the retail firm to submit current addresses its directors and the company secretary.

The company and its lenders had approached the CDR cell late last year following the accumulation of around Rs 730-crore debts. According to the order passed by the court last week, the debt-ridden retail firm has also been directed by the court to give details of its debtors and creditors with their complete addresses.

It has also submit details its employees and if any amount outstanding to them. Court's direction came on a company petition filed by its creditor DBS Bank requesting to wind up the firm.

Earlier, during the last hearing on April 28, 2010 the court had directed the bank to file a copy of the Corporate Debt Restructuring (CDR) scheme formulated by Reserve Bank for the company.

Vishal Retail, which is having around 170 outlets, is currently undergoing CDR exercise.