HC saves Dunlop from immediate liquidation
09 Feb 2013
The management of ailing Dunlop India on Friday got a breather from the winding-up order served on it on 31 January as a bench of the Kolkata High Court said that it would hear the company's plea for a stay on the order on 18 February.
The company was asked by the court to deposit Rs10 crore as an earnest of its intentions to continue running the company.
Under the winding-up order, a single-judge bench of the high court said it would appoint a liquidator to take control of the assets and account books of the company.
The court had directed the official liquidators on Monday not to move in immediately on the basis of the earlier order, which said that official liquidators should take over the company's assets and its books of accounts.
The 87-year-old company set up its first factory at Sahaganj in Hooghly district in 1926. It was originally a US company named after John Dunlop, the inventor of the pneumatic (air-filled) tyre. However, the company started fragmenting within a few years of its formation, selling branding rights to companies like Goodyear.
Dunlop India is now controlled by the Pawan Ruia group. It has steadily lost its market to newer rivals like JK Tyres and MRF Tyres.