Bank files petition seeking repayment of 106cr

HC admits plea against Sujana firm

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The Hyderabad High Court on Tuesday admitted a petition by the Mauritius Commercial Bank, seeking liquidation of Sujana Universal Industries Ltd.

The bank moved the High Court alleging that Sujana Industries, owned by Union minster of state Y. Satyanarayana Chowdary (Sujana Chowdary), had defaulted loan payments of `106 crore.

The bank submitted that the company had stood as guarantor for the loan which had been availed by Mauritius-based Hestia Holdings Ltd, a subsidiary of the company.

Counsel for Sujana contended that his client was only the guarantor and had not availed the loan directly from the bank, he added that they were prepared to repay the loan.

While admitting the plea, Justice A. Rajasheker Reddy observed that Sujana Industries had resolutely refused to repay the loan to the bank in spite of assuring to do so.

The judge pointed out that “absolutely nothing is placed on record to even hint that the company does not owe the money to the petitioner. Any other creditor would be, as a right, be entitled to ask for admission of the petition against such a company”.

“If so, then why has the petitioner been kept away from this right? It’s only fault being that it lent some money to the subsidiary of the company outside India and filed a suit for the same in the court where the transaction took place,” the judge added.

The judge felt that if the petitioner was deprived from the right of admission of the plea in a case like this, it would encourage other Indian companies to be dishonest in their international dealings.

While holding that the petition was liable for admission, the judge said in the order to give one more opportunity to the company and the publication of the company petition was deferred for a period of six months.