Friday, 20 November 2015

Winding Up Petition 143/2015 - Hearing Update (20/11/2015)

The matter was heard before the Madras High Court today.

Before we update you on the same, it came to our knowledge belatedly that the Criminal Appeal filed by Helios and Matheson Information Technology Ltd. before the Supreme Court was dismissed on 30/10/2015 for failure to deposit the 10 crores by 30/10/2015. The update is available here.

This is important because H&M is under no obligation now to deposit the 10 crores in Madras High Court but is still making an effort to deposit the money. This could be because they want to avoid winding up or because they want to buy some time to prevent strong EOW action by getting some protective order from the Madras High Court.

Helios and Matheson Information Technology Ltd. had in the previous hearing deposited 5.5 cr in the Madras High Court. In the previous hearing the Court had asked Helios and Matheson Information Technology Ltd. to deposit another 4.5 cr but once again H&M defaulted and only deposited 0.5 cr. H&M stated that it would deposit 1.5 cr by 4/12/2015 and another 1.5 cr by 12/12/205. The balance 1 cr is to be taken from the personal accounts as mentioned in the EOW report. The Court warned H&M against further delay. The Court seems to be pressing hard for this security in order to establish the bonafides of H&M especially when they are no longer under any obligation to deposit the money on account of the Supreme Court matter having been dismissed.

The Court once again reminded H&M that they had not submitted the complete list of investors (Fixed Deposits / Promissory Notes / Bill Discounting) and that it would take strict view of the non-compliance.

Next date of hearing is 4/12/2015.