Madras HC says no Pyramid Saimira plea

The Madras High Court today refused to stay the appointment of the Provisional Liquidator (PL) to Chennai-based entertainment company Pyramid Saimira Theatre Ltd (PSTL). The PL appointment will continue till next hearing, which is posted on June 30, 2009.

Meanwhile the company told the court that it's turn over as on March 31, 2009 stood at Rs 721 crore.

On June 19, the Madras High Court had appointed the PL to take charge of Pyramid Saimira's assets. This order was passed on the basis of a petition filed by Mumbai-based Patni Financial Advisors, which had given loan of Rs 5 crore by way of inter-corporate deposit to PSTL, which did not paid back the loan.

Patni's main plea was for winding, appointment of PL and interim injection for PSTL continuing its business. Hearing the plea the court had appointed the PL.

On Monday, PSTL had filed a petition seeking that the order appointing the PL be recalled. In its petition PSTL had stated that till December 18, 2008 the company had paid Rs 22.11 lakh as interest to Patni Financial Services.

Since the Income Tax Department in Chennai had attached the bank accounts of the company the financial transactions had come to halt. It also claimed that “the company is financially stable and is trying to recover the debt of Rs 70 crore from debtors. Gross turn over of the PSTL as on March 31, 2009 stood at Rs 721 crore”.