The Madras High Court has appointed its official liquidator as the provisional liquidator (PL) of Chennai-based education services firm Edserv Softsystems Ltd, in a petition seeking winding up of the company filed by Mumbai-based India Factoring and Finance Solutions Pvt Ltd (Indian Factoring).
The case relates to non-payment of outstanding amount by Edserv charged by the aforesaid firms. Edserv said it was contesting the order, though did not reveal more on it.
In an order issued on August 19, 2013, justice V Ramasubramanian said, “the official liquidator, High Court be and is hereby appointed as the provisional liquidator of the respondent company, viz, Edserv Softsystems Ltd.” The order further stated that the provisional liquidator appointed hence would take charge of the assets of the respondent company.
Besides, the ex-directors of the respondent company were directed to file their statement of affairs before the official liquidator within 21 days.
Indian Factoring officials allege Edserv ignored to make the payment of outstanding amount, as of now Rs 1.16 crore, from a total amount of Rs 5 crore it had sanctioned to Edserv on August, 2011. It said it had sold the shares pledged by Edserv earlier and demanded it to pay the rest.
Edserv denied to make payment disputing the amount claimed by India Factoring. This led both parties to the court.
S Giridharan, founder and chairman and managing director of Edserv Softsystems, said, “We are contesting this order, which is ex-party and since the matter is subjudice I’m not able to elaborate further.”
According to a copy of the order, Edserv did not appear in person or by advocate despite serving a notice. The Judge admitted Edserv's petition and ordered, upon hearing the advocate of Indian Factoring and the petition and reading other documents filed by Edserv.
The order further stated Indian Factoring to deposit Rs 10,000 towards initial expenses before the official liquidator.