Spin-Cot Textiles admits liability of Rs 34.29 cr to NSEL

Says will deposit Rs 50 lakh every month in the court till the arbitration proceedings are over

Admitting that it owes Rs 34.29 crore to the scam-hit National Spot Exchange Ltd (NSEL), Spin-Cot Textiles Ltd has given an undertaking to the Bombay High Court that it would deposit Rs 50 lakh every month in the court till the arbitration proceedings are over.

Spin-Cot Textiles is one of the defaulters of the Jignesh Shah-led NSEL which is facing problems in settling Rs 5,600 crore dues of some 13,000 investors.

The first installment would be paid on December 10 and the remaining installments on or before 10th of each succeeding month, Navin Choumal, lawyer of Spin-Cot Textiles Ltd, said last week.

NSEL filed a petition under section 9 of the Arbitration and Conciliation Act, seeking an court order against Spin-Cot Textiles, asking it to deposit Rs 38.25 crore in the court or furnish bank guarantee. It also asked for the appointment of a Court Receiver in respect of properties mentioned in the petition.

Last week, Justice R D Dhanuka, while disposing of the petition, directed both the parties to take appropriate steps for appointment of arbitrator.

If Spin-Cot Textiles makes three defaults in paying installments as stated, a Court Receiver of the Bombay High Court would be appointed, the Judge said.