Swc Opposes Creditors Plea To Vacate Hc Order

Shaw Wallace and Company (SWC) opposed the plea of its creditors to vacate the order passed by the Calcutta High Court which called for staying initiation and continuation of any legal proceedings against SWC. Justice S K Sinha has adjourned the case till March 3. SWC contended in the court of Justice Sinha that the court ordered the company to hold a meeting of its creditors to consider a scheme of arrangement for payment of the dues to the creditors.

If the creditors have any thing to say they should have raised their objection at the meeting, the company argued. It was further stated by SWC that there is no violation of provisions of the Companies Act and any company may move ex-parte and obtain a stay on the proceedings initiated against it.

The counsel for the creditors prayed for vacating the order of the court. The creditors contended that the scheme was an eyewash.

It was also argued by the creditors that the creditors list was not complete and this should not be treated as the voter list at the meeting. For example, it was stated that Peerless General Finance and Investment Company have a claim of over Rs 24 crore against SWC.

Peerless has already initiated winding up proceeding against SWC but its name was not listed as a creditor so Peerless has no right to participate at the meeting, the counsel for creditors argued.

The creditors said that the order must be vacated as SWC had obtained it illegally.