Markets

Spin-Cot admits liability of Rs 34.3 cr to NSEL

PTI Mumbai | Updated on March 12, 2018

Admitting that it owes Rs 34.29 crore to the scam-hit National Spot Exchange Ltd (NSEL), Spin-Cot Textiles Ltd has given an undertaking to the Bombay High Court that it would deposit Rs 50 lakh every month in the court till the arbitration proceedings are over.

Spin-Cot Textiles is one of the defaulters of the Jignesh Shah-led NSEL which is facing problems in settling the Rs 5,600 crore dues of about 13,000 investors.

The first instalment would be paid on December 10 and the remaining instalments on or before 10th of each succeeding month, Navin Choumal, lawyer of Spin-Cot Textiles Ltd, had said last week.

NSEL had filed a petition under Section 9 of the Arbitration and Conciliation Act, seeking court order to Spin-Cot Textiles to deposit Rs 38.25 crore in the court or furnish bank guarantee, and appoint a court receiver in respect of properties mentioned in the petition.

Last week, Justice R.D. Dhanuka, while disposing of the petition, had directed both the parties to take appropriate steps for the appointment of arbitrator.

If Spin-Cot Textiles makes three defaults in paying instalments as stated, a court receiver of the Bombay High Court would be appointed, the judge said.

Published on December 05, 2013

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