Can’t let firms be dishonest: Hyderabad High Court
The respondent company has resolutely refused to pay it back in spite of assuring many times earlier
Hyderabad: The Hyderabad HC bench upheld findings of a single judge in loan default case of Sujana Universal Industries Ltd in which the judge pointed out: “There is no manner of doubt that amounts were guaranteed to be repaid to the petitioner by the respondent company. The respondent company has resolutely refused to pay it back in spite of assuring many times earlier.”
The judge pointed out: “To deprive the petitioner will encourage Indian companies to be dishonest in global dealings. In view of the above facts and circumstances, Company Petition is liable to be admitted.”
While dismissing the plea, it directed Sujana Industries to pay the amount by September 30, failing which the bank can go ahead with the publication of the company petition.
Timeline of the sujana default
Nov. 9, 2010: Hestia Holding Ltd enters into a facility agreement with Mauritius Bank to avail a loan of $10 million.
Dec. 9, 2010: Sujana Industries executes a deed of guarantee to guarantee the obligations of Hestia under the facility agreement for up to $10 million.
July 12, 2011: The Mauritius Bank and Hestia agree to amend the Nov. 9, 2010, facility agreement by increasing the limit to $20 million.
Aug. 3, 2011: Sujana Industries executed another deed of guarantee to guarantee the obligations of Hestia under the original facility agreement.
Feb. 13 to June 26, 2012: Hestia drew around $19,997,102 on various dates, the sum being almost the full amount of $20 million available under the amended facility agreement.
Aug. 11, 2012: Hestia defaults for the first time on its repayment obligation.
Sept. 8, 2013: The Commercial Court, Queens Bench, in Mauritius directs Hestia to pay Rs 106 crore (with interest) within two weeks, on an appeal by the Mauritius Bank
July 18, 2014: The Mauritius Bank moves the Hyderabad High Court by filing a company petition seeking liquidation of Sujana Industries.
April 21, 2015: Single judge allows the petition.
June 8, 2015: Sujana Industries move the company appeal in the High Court.
July 28, 2015: High Court bench dismisses the appeal.