Kolkata, March 26 (IANS) The Calcutta High Court Monday ordered the appointment of a provisional liquidator to look after the administration of tyre-maker Dunlop India Limited.
The order was given while hearing petitions brought by unsecured creditors of the company, headed by Pawan Ruia.
"The company has been transferring its assets and also there is pilferage going on... If the assets continue to be lost, how will the unsecured creditors will recover their debt.
The court of Justice Sanjib Banerjee after listening to our plea, ordered the appointment of a provisional liquidator who would manage the affairs of the company till the pendency of the case," lawyer Sumit Das, appearing for the petitioners, told IANS.
The petitioners also claimed that at a time when the company is liable to pay dues of crores of rupees to its creditors, it has put up an advertisement for selling its properties worth Rs.500 crore at Worli in Mumbai.
The unsecured creditors have filed a number of petitions before the high court seeking liquidation of the company.
Meanwhile, Dunlop said it will appeal the high court order.
"We will surely appeal against the order at a higher forum," company spokesman D. Nandi said.
"During the hearing the West Bengal government said that it doesn't want the company to go into liquidation and will provide all help to ensure. This is heartening news for us," he added.
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