The Hindu Business Line : HC stays auctioning of Bajaj unit’s properties

Chennai, July 17 The Allahabad High Court has stayed the proposed auctioning of the properties of Bajaj Hindusthan Ltd’s Kinauni mill in Meerut district of Uttar Pradesh.

The auction has been stayed on the condition that Bajaj Hindusthan will make a cash payment of Rs 1 crore towards dues to growers, who had supplied sugarcane to the mill.

The remaining amount of Rs 16 crore will have to be paid before July 24, according to the order passed by a division bench comprising Mr Justice Janardhan Sahai and Mr Justice Sudhir Agrawal.

The move to auction Kinauni mill’s properties followed a recovery certificate issued by the Uttar Pradesh cane commissioner on July 1.

Hearing

During the hearing on Wednesday, the advocate for the Uttar Pradesh cane growers societies, Mr Ravindra Singh, and Mr S.P. Kesharwani, representing the State Government, told the court that despite the Supreme Court’s order to clear the dues to the growers, the company had failed to settle the arrears.

The bench also made it clear that in case of non-compliance by Bajaj Hindusthan, the stay order would be automatically vacated.

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More Stories on : Sugar | Courts/Legal Issues

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