The Hindu Business Line : HC orders restoration of power supply to Dunlop factory

Responding to an appeal by Dunlop India Ltd, the Calcutta High Court on Wednesday passed an interim order directing West Bengal State Electricity Distribution Company (WBSEDCL) to restore power supply to the Dunlop facility at Sahagunj in 24 hours. Dunlop has challenged WBSEDCL’s decision and moved to HC on Tuesday.

According to a Dunlop spokesperson, in his interim order, Mr Justice Arunabha Basu of the Vacation Bench of Calcutta High Court had asked WBSEDCL to accept the letter of credit on ICICI bank as offered by Dunlop. The state power distribution company had previously refused to accept the LC on the ground that it was not irrevocable in nature. The petition will be heard again in four weeks.

Operations has come to a grinding halt at the Sahagunj facility since December 24, as WBSEDCL had withdrawn the connection as the letter of credit previously submitted by the company was revoked by the bank concerned.

Successive attempts by Dunlop to submit a fresh LC and restore the connection had failed as WBSEDCL said it was unable to accept only an irrevocable LC.

“We are subjected to provide connection to industry against only irrevocable revolving letter of credit or bank guarantee,” WBSEDCL Managing Director, Mr Moloy Del, had told Business Line.

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