Itw Signode Files Petition Against Swc

Hyderabad-based ITW Signode (I) Ltd has filed a petition in the Calcutta High Court for the appointment of a provisional liquidator against Shaw Wallace & Co Ltd for failing to pay inter-corporate deposits worth Rs 1 crore.

Justice A Kabir fixed the date for hearing the case on April 7 and directed the liquor giant to file its affidavit. In its petition, ITW Signode stated that the official liquidator of the Calcutta high court can be appointed the provisional liquidator over and in respect of the assets and properties of Shaw Wallace.

He should take charge of these assets and properties and file a report to the court on the various irregularities and acts of diversion of assets and properties committed by the existing management of the company.

 

ITW Signode also filed a winding up petition against Shaw Wallace for failing to pay more than Rs 1 crore. The petition stated that on or around January 6, 1995, Shaw Wallace approached ITW for grant of inter-corporate deposits (ICD) of Rs 1 crore with interest not exceeding 25 percent per annum for a period between 90 to 180 days.

ITW accepted the offer and agreed to place the ICD with the company for 90 days which ended on April 10, 1995.

Several creditors have filed proceedings against Shaw Wallace and the employees and workers of the company also appealed to the Company Law Board against the management headed by Manu Chhabria alleging serious oppression of funds and mismanagement.

The Company Law Board has already appointed two independent directors on the board of the company.