Madras HC says no to Kotak's plea in Subhiksha matter

The Madras High Court's Division Bench today said it will not give grant to Kotak Bank's plea to inspect Subhiksha's records. The court also said it will hear the matter again after two weeks.

Kotak Mahindra Bank, which has exposure to the tune of Rs 40 crore working capital in Subhiksha, had filed up a winding up petition earlier against the retail chain. The bank main plea include appoint of PL under section 450 of the companies Act to oversee Subhiksha's assets and to assess Subhiksha's financial records.

Hearing which, the court appointed the PL earlier however after Subhiksha's appeal it gave a stay on the appointment on April 27. In it's order, the court had asked Subhiksha to submit all the accounts on or before May 20, 2009 to the court in absence of which the earlier order, which is PL taking over charge of Subhiksha’s assets, will come into place. Following which Subhiksha had filed the accounts on May 20.

During today's hearing Kotak made a plea at the court to assess Subhiksha's records. However, the Divisional Bench consist of Justice Raviraja Pandian and P P S Janarathana Raja said that “the court will not give grant” and adjourned the hearing for two weeks. The next hearing is scheduled on June 26.