Calcutta high court appoints liquidator for Dunlop assets
27 Mar 2012
The Calcutta high court yesterday appointed a provisional liquidator to take charge of the assets of Dunlop India Ltd (DIL).
Following the court order, Dunlop India chairman Pawan Ruia and the company's board of directors will now not be able to transfer property from the company till the court heard out the dozen-odd winding up petitions pending against the company.
A plea by Dunlop India for a stay on the interim order was turned down by justice Sanjib Banerjee. The company hasindicated later that it would go in appeal.
The official liquidator of the high court would act as the provisional liquidator in this case, as ordered by justice Banerjee. A liquidator takes control of all the assets of a company for settling claims against it when it goes into winding-up process.
Besides being in charge of the existing assets, the provisional liquidator would also try and get back those assets that were transferred by DIL if such transfers were to be found to be fraudulent in nature.
Madura Coats Ltd (MCL) had, in 2000-2001, supplied some goods to DIL. A dispute arose over the commercial transaction, following which MCL filed a civil suit against DIL.