Companies

Why not wind up co, Delhi High Court notice asks Indiabulls Retail

Our Bureau Ahmedabad | Updated on March 15, 2011

piramyd

The Delhi High Court has asked the CEO of Indiabulls Retail Services Ltd to appear in person before the court on March 24 to show cause why the company be not wound up.

The Judge, Mr Justice Manmohan's observation came on Monday on a winding up petition filed by the plaintiff, Palihill Mercantile Company Pvt Ltd, against the respondent, Indiabulls Retail, known until June 2008 as Piramyd Retail Ltd.

The Chennai-based Palihill had in May 2009 filed a civil suit in an Ahmedabad court claiming payment of dues of Rs 19.33 crore from Indiabulls Retail by way of unpaid licence fee and other charges for the leased premises in Ahmedabad.

By the agreement between the two parties, Piramyd Retail had leased 75,000 sq ft of commercial premises from Palihill for 60 months from July 2007 for a monthly consideration of Rs 60 lakh. With a lock-in period of 36 months, it was to increase at a 12 per cent rate for the remaining 24 months.

Stating that Indiabulls shutdown business operations and abandoned premises on August 15, 2008, Palihill claimed dues from July-August 2008 onwards.

The plaintiff said it had taken a loan of Rs 38 crore to part-finance purchase of the said premises and the defendant had agreed to repay it by way of monthly instalments directly to the lender, Indian Overseas Bank. However, the latter failed to do so after July 2008.

Earlier, Mr A.A. Sheikh, Chamber Judge of the civil court of Ahmedabad, had in his order of May 2009, given an ad interim injunction to Indiabulls, which argued that it had already handed over the premises to Palihill's possession in August 2008. This was challenged by Palihill in the Delhi High Court.

Published on March 15, 2011

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