Centre Opposes Shaw Wallace Creditor Plan
The dispute over the repayment scheme of Shaw Wallace & Co (SWC) in the Calcutta High Court has taken a new turn with the Centre opposing the plan prepared by the liquor major.
To make matters worse for SWC, Casion Finance & Investment (P) Ltd, one of the creditors who had earlier approved the scheme, withdrew its support, alleging that a false letter and affidavit had been filed on behalf of one of the directors of the company.
The case has been adjourned till August 10.
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The hearing on the case was held for the second consecutive day yesterday. The hearing was held in response to an application filed by SWC praying for grant of approval of the repayment scheme, which has already received the nod from 75 per cent of the creditors.
The counsel for Central Government stated in the court of Justice S K Sinha that it has opposed the scheme as most creditors are not in favour of the proposal.
It was also stated that a number of winding up petitions were pending against the company and there was no clear provision in the scheme for repaying the dues of all unsecured creditors.
Counsel for Casion Finance & Investment stated that the company has withdrawn its consent to the scheme as a false letter and affidavit was allegedly filed in the court in the name of OnkarNath Rampal, a director of Casion. But Rampal has disputed the correctness of the letter.
Some creditors who are opposing the scheme stated that court should cancel the meeting and order a fresh meeting.