The Delhi High Court has passed an ad-interim ex-parte order of injunction, restraining dry cell battery major Eveready Industries and bulk tea producer McLeod Russel, both group companies of financially stressed Williamson Magor group, from selling, transferring and encumbering or creating third party rights on any of their assets.
“The High Court of Delhi, in reference to a matter filed against some of the promoters of the company, with regard to certain alleged dues, has passed an ad-interim ex-parte order of injunction by which, inter alia, the company has been restrained from selling, transferring, alienating, disposing, assigning, dealing, encumbering or creating third party rights on any of its assets, and carrying out any change in its capital structure, or any corporate or debt restructuring till the date of the next hearing in the matter,” Eveready Industries said in a stock exchange filing on last Saturday.
“The company has been advised that since it is neither a party to any agreement or arrangement with the petitioner, in respect of the said alleged dues nor does any claim pertaining to the said dues arise from the company, the said ad-interim order against the company, should not be legally tenable,” the company said in the filing, adding that the matter was currently subjudice and the company was in the process of taking appropriate action against the said order based on advice from its legal counsel.
McLeod Russel also made similar stock exchange disclosures last Saturday. Both the Williamson Magor group companies said this ad-interim order passed by the Delhi High Court had no impact on the operations or day to day business of the companies.
Notably, the Calcutta High Court last month had vacated its ad-interim order of injunction by which it had earlier restrained Eveready and McLeod from transferring, alienating or encumbering any of their assets.
The high court in September had passed an ad-interim order of injunction restraining Eveready Industries, McLeod Russel and Williamson Magor & Co from transferring, alienating or encumbering any of their assets till the application filed by Infrastructure Leasing and Financial Services (IL&FS) was disposed off.
According to the petitioner (IL&FS), based on the negotiations entered into with the Williamson Magor Group it had granted loan facilities of `170 crore to the group through Williamson Magor
Accidentally, Yes Bank has moved the National Company Law Tribunal (NCLT) against McLeod Russel, once the biggest bulk tea producer in the world, on account of a loan default. Earlier, Techno Electric & Engineering, another financial creditor of the tea company, had filed an insolvency petition after it had defaulted on repayments of Rs 100-crore loan.
Notably, in July this year Yes Bank had acquired 9.47% shares of Eveready by invoking pledged shares following loan default by McLeod.
Source: Financial Express, December 24, 2019