Swc Gets More Time To Repay Creditors

The Calcutta High Court has given one more opportunity to Shaw Wallace and Company Ltd (SWC), controlled by Dubai-based NRI Manu Chabbria, to pay off the dues of its creditors to avoid winding up proceedings.

The court has fixed June 16 as the date for the company to submit a report to the court that it has carried out the order. Several companies have filed winding up petitions against the liquor giant in the Calcutta High Court for non-payment of loans the company had taken as corporate loans with a promise to repay the amount by January 1996.

Sociedede De Famento Industries (dues over Rs 6 lakhs), Peerless Abasan Finance Ltd (over Rs 25 lakhs), Sajjan India (more than Rs 15 lakhs), Ranbaxy Laboratories Ltd (over Rs 50 lakhs), Drap leasing and Finance Company Ltd (Rs 8 lakhs) and Etheberi Tea Company (Rs 25 lakhs), and many others like Tolani Bulk Carriers Ltd, Yarn Syndicate Ltd, Praj Finance Ltd, Esjay Commerce Ltd, Videocon Leasing and Industrial Finance, Tapati Machines P Ltd ,Empire Industries and Kanayan Digital system P Ltd had initiated proceedings for winding up of SWC.

 

Earlier, in October 1996, the court directed SWC to pay off the loan amounts in installments. SWC has paid certain instalments but defaulted to pay the entire amount within the stipulated period as directed by the court.

Justice Altamas Kabir has now given another opportunity to SWC to pay off the dues so that the liquidation proceedings initiated against the company could be stayed.

Two applications have been filed in the court against SWC for appointment of a provisional liquidator of the company. ITW Sinode and Hindusthan Development Corporation have filed these applications.

Justice Kabir has fixed the date of hearing of the two petitions also on June 16.

Several companies have filed winding up petitions against the liquor giant in the Calcutta High Court for non-payment of loans the company had taken as

corporate loans with a promise to repay the amount by January 1996