Court reserves decision on admissibility of Mauritius Bank’s plea against Sujana’s firm

Hyderabad: Justice A. Rajasheker Reddy of the Hyderabad High Court on Monday reserved decision on the admissibility of a petition by the Mauritius Commercial Bank seeking liquidation of Sujana Universal Industries Ltd.

The Bank moved the High Court alleging that the Sujana Industries defaulted on payment of a Rs 106 crore loan availed by the Mauritius-based Hestia Holdings Ltd and Sujana Industries stood as guarantor for the loan.

Earlier, the court granted time to Sujana Industries on a request from it for an amicable settlement with the Bank.

The company placed a three year repayment schedule before the Bank for repayment of the loan in a phased manner and it was rejected by the Bank.

The Bank pressed for adjudication of its plea for the liquidation of the company.

The counsel for Sujana contended that his client is only a guarantor and it did not avail any loan directly from the Bank and they are prepared to repay the loan.

The Bank counsel argued that his client offered a loan to Hestia Holdings only after Sujana Industries came forward as guarantor.

The judge heard the arguments of both the counsels on the admissibility of the plea and reserved orders.