Swc Creditors Move Hc, Seek Stay On Order

Unsecured creditors of Shaw Wallace and Co (SWC) moved the Calcutta High Court yesterday, seeking the vacating of the HC order which stayed all proceedings against the liquor giant.

Justice S K Sinha had, last December, in response to a petition filed by SWC, stayed commencement and proceedings of any suit, continuation and the initiation of any winding up proceedings against Shaw Wallace and Co.

The court had passed the order ex parte but directed the company to serve notice to the creditors.

The court also passed an order for holding a creditors' meeting to arrange a scheme for making payments to the unsecured creditors.

 

The meeting, initially fixed on February 28, will now be held on March 18 in view of the forthcoming elections.

Yesterday, Sudipta Sarkar and Tilak Basu, counsel for the unsecured creditors such as Hindustan Development Corp-oration, ITW Signode, Colgate- Palmolive Ltd, and Marine Container, argued for vacating the stay order. P C Sen, Tarun Aich, Ram Banerjee, Shubhransu Ganguly, the SWC counsel, opposed the plea.

The counsel for creditors stated that SWC tried to deprive the dues of the inter-corporate depositors (ICD) with the help of the order.

It was also said that after obtaining the order, it stopped making payment to the creditors.

The Shaw Wallace and Co counsel said the court had directed SWC to hold a meeting of its creditors to consider a scheme for payment.

It was stated that the interim order should continue. Justice Sinha directed that all SWC cases will come up for hearing on February 16.

In an other application, India Foils Ltd (IFL), a decree holder against SWC, also prayed for a stay of the December order.

In its petition, India Foils Ltd said that by a consent decree SWC has paid most of the decreetal amount and only Rs 40 lakh (without interest) was due from the company.

Justice Sinha directed both IFL and Shaw Wallace and Co to file their affidavits and has fixed the hearing on March 4.

CLB on January 21, passed an order that the financial Institutions(FIs) have to choose their representatives for the SWC board within 10 days.