Hyderabad: The Hyderabad High Court on Tuesday admitted a petition by the Mauritius Commercial Bank, seeking liquidation of Sujana Universal Industries Ltd.
The bank moved the High Court alleging that Sujana Industries, owned by Union minster of state Y. Satyanarayana Chowdary (Sujana Chowdary), had defaulted loan payments of Rs 106 crore.
The bank submitted that the company had stood as guarantor for the loan which had been availed by Mauritius-based Hestia Holdings Ltd, a subsidiary of the company.
Counsel for Sujana contended that his client was only the guarantor and had not availed the loan directly from the bank, he added that they were prepared to repay the loan.
While admitting the plea, Justice A. Rajasheker Reddy observed that Sujana Industries had resolutely refused to repay the loan to the bank in spite of assuring to do so.
The judge pointed out that “absolutely nothing is placed on record to even hint that the company does not owe the money to the petitioner. Any other creditor would be, as a right, be entitled to ask for admission of the petition against such a company”.
“If so, then why has the petitioner been kept away from this right? It’s only fault being that it lent some money to the subsidiary of the company outside India and filed a suit for the same in the court where the transaction took place,” the judge added.
The judge felt that if the petitioner was deprived from the right of admission of the plea in a case like this, it would encourage other Indian companies to be dishonest in their international dealings.
While holding that the petition was liable for admission, the judge said in the order to give one more opportunity to the company and the publication of the company petition was deferred for a period of six months.
Relief provided to Desam legislator
Justice M.S. Ramachandra Rao of the Hyderabad High Court on Tuesday stayed all further proceedings, including appearance of TD MLA A. Revanth Reddy before the lower court in a case pending against him with regard to his alleged derogatory remarks against Telan-gana Chief Minister K. Chandrasekhar Rao.
While dealing with a criminal petition moved by Mr Revanth Reddy seeking to quash the criminal proceedings pending against him before the III additional chief metropolitan magistrate, Hyderabad, the judge granted interim relief to the petitioner.
He brought to the notice of the court that a private complaint was filed against him by an advocate K. Govardhan Reddy seeking action against him for making corruption char-ges against the Chief Minister.
The complainant said allegations had not only hurt him and the sentiments of the people of Telangana, but that such remarks may also lead to breach of public peace.
He urged the lower court to punish the legislator for the offences punishable under Sections 504 and 505 of IPC (intentional insult and public mischief)
The MLA said that the lower court took cognisance of the complaint and following the directions of the lower court the police filed chargesheet in the case.
While contending that the complaint and chargesheet are part of political revenge against him, he urged the High Court to stay all further proceedings against him in the case. The judge granted interim stay and adjourned the matter.
Order restraining IOA set aside in HC
A division bench comprising Chief Justice Kalyan Jyoti Sengupta and Justice P.V. Sanjay Kumar of the Hyderabad High Court on Tuesday set aside an order of single judge in which the judge restrained the Indian Olympic Association and the Sports Authority of AP from recognising any other association including the AP (Residuary) Olympic Association.
Earlier, a single judge granted the interim order on a petition by the Visakhapatnam District Olympic Association.
Aggrieved by the order, the AP (Residuary) Olympic Association had moved the appeal before the bench.
P. Roy Reddy, counsel for the appellant said that after the division of AP, the erstwhile AP Olympic Association has been bifurcated as the Telangana Olympic Association and the AP (Residuary) Olympic Association.
He said that the elections were held on April 4, 2015 to the appellant association and Galla Jayadev, Member of Parliament was elected as president.
While granting the interim stay, the bench made it clear that it will not go into the merits of the case and the matter has been remanded to the single judge to hear the matter a fresh and pass appropriate orders.
The bench directed the Indian Olympic Association and the Sports Authority of the AP to issue notices to the petitioner 72 hours prior to the any action if it intended to take on the representation of the appellant seeking recognition.
