HC Dismisses Winding up Plea Against Ruchi Soya
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.”