Hyderabad: A division bench comprising Justice Ramesh Ranganathan and Justice S. Ravi Kumar of the Hyderabad High Court on Tuesday dismissed an appeal by Sujana Universal Industries Ltd, owned by Union minister Sujana Chowdary, challenging an order of a single judge in allowing a petition by the Mauritius Bank seeking the liquidation of the company.
A single judge had in April 2015 allowed a company petition moved by the Mauritius Bank seeking liquidation of Sujana Industries on the ground of failing to repay Rs 100 crore loan availed by its subsidiary firm, Heistia Company Ltd, in Mauritius, for which the Sujana company stood as guarantor.
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.
Aggrieved by the order, Sujana Industries preferred an appeal contending that lenders could not seek liquidation of guarantor firms through company petitions.
While dismissing the appeal, the bench refuted the argument of the company that the lender had the only right to recover their money through filing civil suits in civil courts.
