Financial Daily from THE HINDU group of publications
Tuesday, Jun 21, 2005
Financial Daily from THE HINDU group of publications Tuesday, Jun 21, 2005 |
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Corporate
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Courts/Legal Issues HC likely to finalise Standard Motors' property sale issue Our Legal Correspondent
Chennai, June 20 THE long-delayed sale of the movable and immovable properties of the closed light vehicle factory of Standard Motor Products of India Ltd at Perungalathur, near Chennai, is likely to come through in the next few days. The Madras High Court is scheduled to hear the case pertaining to the auction of the property on Tuesday. A single judge Bench had held the auction in the open court on November 24, 2004, and the bid was granted in favour of Mr T.S.R. Kannaiyan, a Coimbatore-based entrepreneur, as his offer of Rs 140 crore was the highest. He had deposited a sum of Rs 6.30 crore as earnest money, and the court directed him to pay the balance amount of Rs 133.70 crore as per a formula fixed by it. Meanwhile, Nuziveedu Seeds Ltd, Hyderabad, obtained an interim stay of the order of the judge by a Division Bench on December 23, 2004. The order was modified subsequently following a petition filed by the workers' union seeking vacation of the interim stay, and the 6th respondent (Mr T.S.R. Kannaiyan, Chairman, Hindustan Group of Companies) was directed to deposit Rs 60 crore, in addition to Rs 10 crore said to have been deposited with the Official Liquidator, High Court, to the credit of Standard Motors (in liquidation) within a period of 30 days from April 28, 2005 (when the modified order was given by the Court). A Division Bench comprising Mr Justice Misra and Mr Justice Nagappan, before whom the petition of the appellant (Ltd) came up for hearing on Monday, said that the issue should be considered by the Bench presided over by Mr Justice P. Sathasivam (which had heard the petition earlier) in the interest of justice. Counsel for the Nuziveedu Seeds stated that the appellant was ready to deposit a sum of Rs 140.05 crore immediately - if so directed by the Court, today. Counsel for the 6th respondent (Mr T.S.R. Kannaiyan) submitted that if the order was clarified, the lending bank was willing to advance money, and he could deposit the money within a day thereafter. The Bench felt that all these matters could be pleaded before the Division Bench. The Bench said that keeping in view of the urgency of the matter, it might be listed before the Division Bench presided over by Mr Justice Sathasivam on June 21.
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