COMMENTARY
INTERVIEW
SPECIALS
CHAT
ARCHIVES

CRB case: HC grants time to liquidator on Daewoo's plea

The Delhi high court on Tuesday gave two weeks time to the official liquidator of the CRB Capital Markets Ltd to file his reply on an application of the Daewoo Finance Ltd, seeking a direction to the Reserve Bank of India for defreezing its bank accounts, which have been frozen since June 13.

A division bench consisting of Chief Justice Ajay Prakash Misra and Justice Dalveer Bhandari directed the official liquidator, Shri Ram, to file additional reply with two weeks and adjourned the case to October 16.

The bench ruled that in view of the urgency of the matter, as expressed by the applicant, the matter be listed on October 16, by which all relevant information will be available in the court record to decide the case.

Counsel for Daewoo K T S Tulsi said that even after the court had ordered a conditional defreeze of the accounts, which the company was ready to comply with, the banks with whom Daewoo had accounts were not releasing its money on the grounds that they had not received any instruction from the Reserve Bank of India.

He said because of the seize, the company has not been able to carry out its day-to-day functioning and has even failed to pay salaries to its employees.

He alleged that the attitude of the official liquidator was such that he wanted Daewoo also to be among the companies facing winding up.

The CRBCML had only a 24 per cent share in Daewoo and there was no reason why the operation of whole company should be brought to a standstill because of this meagre amount, Tulsi contended, and urged the court to direct the RBI to defreeze its account with the various nationalised and scheduled banks.

Counsel for the official liquidator B N Nayar opposed the contention and said that the order of the single judge, who had unfrozen the accounts of the company on certain conditions, had clearly pointed out that so long as the conditions imposed by the court are not met, the company will be restrained from operating it financial transactions.

Tulsi stated that the official liquidator or the RBI should not have any objections or difficulty in defreezing the accounts as two representatives of Shri Ram were there on the Daewoo board and any decision taken by the board will be known to them.

EARLIER REPORT: Delhi HC notice to Daewoo, liquidator

UNI