Rotomac moves HC upon being declared willful defaulter by BoB

The Allahabad High Court today directed pen manufacturer Rotomac Global Pvt Ltd to place on record details of any assets or installments paid to the Bank of Baroda - to which the company owes a sum of more than Rs 500 crore - since being declared a "willful defaulter".
A division bench comprising Chief Justice D B Bhosle and Justice Yashwant Verma passed the order on a petition filed by the company which had moved the court contending that it has been wrongly declared a "willful defaulter" by BoB despite having "offered assets worth more than Rs 300 crore to the bank since the date of default".

The company was declared a willful defaulter vide an order dated February 27 passed by an authorised committee.
Appearing on behalf of the bank, counsel Archana Singh said, "The company was declared wilful defaulter after following due procedure as laid down by the Reserve Bank of India in its master circular. At present, the company has to pay Rs 550 crore to clear its debt."
She also alleged that the company's directors were "siphoning out money to other companies in order to avoid repayment of loan".
The court fixed April 18 as the next date of hearing in the matter.