Andhra Paper Mills Sues Kedia Castle Over Icd Default

Sources said that arrest warrants are pending against the entire top brass of the House of Kedias Group for bouncing of cheques worth Rs 2 crore which were meant for repayment of inter-corporate deposits from Andhra Pradesh Paper Mills.

The Kedias is trying for an out-of-court settlement by paying off the interest portion of the ICD.Further, it has claimed that it will be in a position to clear all dues by January end 1997. But the Andhra Pradesh Paper Mills on Thursday evening confirmed the pending arrest warrants against the Kedias.

As on today, the principal amount of Rs 2 crore plus the interest and penal interest amount which come around Rs 50 lakh remains unpaid,'' said sources in Andhra Mills.

 

A faxed message from Kedia Castle Dellon company secretary S K Jain said, The Andhra Mills management has agreed to extend the period of the loan to few more months on payment of certain amount of interest which we are proposing to pay them by tomorrow. Moreover we would be able to clear all dues by January 1997. The Kedias had borrowed the sum in the form of an inter-corporate deposit at 21 per cent interest rate for a period of 6 months, interest payable quarterly last year. Interest and penal interest put together come around an additional Rs 50 lakh.

The amount was allegedly repaid through cheques which were bounced. Andhra Pradesh Paper lodged a suit in the metropolitan magistrates court at Secunderabad under Section 138 of the Negotiable Instruments Act.