Monday, 30 October 2017

Winding Up Appeal OSA 19 of 2016 - Hearing update dated 30/10/2017

The last scheduled hearing of 21.07.2017 did not take place but Helios and Matheson Information Technology Ltd. did deposit 2.65 crores in court around that time. Today, the hearing took place and the lawyers appearing on behalf of Helios and Matheson Information Technology Ltd. offered to deposit another 0.12 crores. This takes the total deposited amount to about 10 crores as per our understanding. 

The lawyers for Helios and Matheson Information Technology Ltd. also highlighted verbally that they would deposit another 6.5 crores by April 2018. They also requested that the Madras HC direct Economic Offences Wing (EOW) to submit the total amount available in the frozen bank accounts, so that it could be added to the amount considered deposited in court. EOW was directed to appear in the next hearing.

A few depositors raised an important point: namely disbursement of sums already deposited. However, there was no consensus as neither an administrator, nor a liquidator has been appointed to ensure that the disbursement is done in a fair and just manner.

The Division Bench of the Madras HC heard the parties and expressed concern for the Fixed Deposit holders. However, the court felt that it was trying its best to balance the interest of the creditors versus taking strict action against the company, given that the company is making some payments and is attempting to follow the scheme proposed by the company in court. Considering this, it is important to highlight to the Madras HC, the falsity of the proposal given by Helios and Matheson Information Technology Ltd. in respect of the incomplete/falsified list of Fixed Deposit holders submitted to court, the complete omission of the Promissory Note holders and the holders of other instruments of debt.

Next date of hearing is 20.11.2017.