HC Dis­misses Wind­ing up Plea Against Ruchi Soya

The Economic Times - - Finance & Commodities - Our Bureau

Mum­bai: The Bom­bay High Court has dis­missed the wind­ing up pe­ti­tion against Ruchi Soya In­dus­tries, the coun­try’s largest soya oil pro­ducer, which had bor­rowed .₹ 200 crore from pri­vate sec­tor len­der IDFC Bank.

IDFC Bank had filed the pe­ti­tion in July last year af­ter Ruchi Soya failed to re­pay its short-term credit.

“In the facts of this case, I am sat­is­fied that the re­spon­dent­com­pany which has a tem­po­rary set­back and is mak­ing a sin­cere at­tempt of its re­vival with the as­sis­tance of a large num­ber of the cred­i­tors, it would not be de­sir­able and in the in­ter­est of all the cred­i­tors, in­clud­ing the pe­ti­tioner, to pass any or­der of wind­ing up against the re­spon­dent-com­pany at this stage,” said jus­tice RR Dhanuka in his judge­ment.

On May 21 last year, the re­spon­dent, Ruchi Soya, in­formed Bom­bay Stock Ex­change that it would con­vene a meet­ing on 30th May, 2016, rec­om­mend­ing div­i­dend for the fi­nan­cial year.

This trig­gered a spat be­tween the two par­ties with IDFC Bank re­mind­ing the com­pany of its out­stand­ing dues. Ravi Kadam was the se­nior coun­sel for IDFC Bank while Ruchi Soya was rep­re­sented by Mustafa Doc­tor, another se­nior coun­sel. “We are re­lieved by the judge­ment of the Hon’ble Bom­bay High Court and will con­tinue our ef­forts to work with our lenders, in­clud­ing IDFC Bank, to over­come the chal­lenges be­ing faced by the com­pany,” said a Ruchi Soya spokesper­son.

“Our dis­cus­sions with the Joint Len­der Fo­rum has been pro­gres­sive and we are con­fi­dent of a res­o­lu­tion of the var­i­ous is­sues.”

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