The Supreme Court has dismissed textile manufacturer JCTs plea seeking review of the February 1 order that restrained the Thapar Group company from selling, transferring or alienating its assets.
Restraining JCT from selling, transferring or alienating its assets, the apex court on February 1 had asked the firm to submit a proper revival plan to the Punjab and Haryana High Court, which is hearing a winding up petition filed by the London branch of The Bank of New York Mellon. The company has reportedly failed to clear dues worth R180 crore.
A Bench comprising chief justice Altamas Kabir and justices Anil R Dave and Vikramajit Sen said: We have gone through the review petition and the connected papers. We do not find any merit in the same. Accordingly, the review petition is dismissed.
The Bench in February order had restored the company judge's order that directed JCT not to dispose immovable assets without its prior permission. It had also directed the company judge to consider the same and pass appropriate orders, if required.
According to the bank, JCT had been issued foreign currency convertible bonds worth $30 million in March 2006, which were due for redemption in April 2011. At the time of redemption, the amount due on The Bank of New York Mellon was $33.28 million (R177.97 crore). Failure of the company to pay the redemption amount due on the bonds led the creditor to press default charges against the textile manufacturer.
Failing to clear dues, the bank had in September last year filed a petition in the HC seeking the winding up of the company under the Companies Act.
Opposing the Banks plea, JCT had argued that it was ready to undertake it would not sell, transfer or alienate assets worth over R800 crore. Our restructuring plan has been accepted by the banks. We have 70% of the production at present. But to reach optimal capacity, we need to obtain small working capitals, JCT counsel said, adding the promoter has already sold his house worth R120 crore in 2011 and put the money to bail out the company.
He also argued that 50% of bondholders were supporting the restructuring scheme and its only one bondholder, who has 35% stake, has filed a winding up petition.