Kumar proposes too little too late is being overly generous. In fact,
Mr. Kumar proposes absolutely nothing other than an adjournment.
Those are his only instructions. What is beyond doubt is that the
CDR Scheme has failed utterly. The various Affidavits on record
including those that I referred to earlier show that this CDR
collapse was at least partly, and possibly even principally, due to the
Company’s failure to create additional security required as a pre-
condition for the infusion of further working capital. Many lenders
have cut their losses and assigned their debts to JM Financial. That
Asset Reconstruction Company does not today seem to be willing
to commit to a thing. These applications for an adjournment are
backed by absolutely nothing. There is not a single concrete
proposal that is placed. All that I am told, and told repeatedly, is
that the assignment of the debt has taken place “only recently”.
That is incorrect. That assignment to JM Financial, the Asset
Reconstruction Company, was of 31st March 2016. Two and half
months have passed. Nothing whatever has been done toward
reviving this Company. Most telling is what transpired in Court
today. Given the opportunity to make some payment to the
Petitioning Creditors, and despite being put to no terms as to the
amount of that payment, the Company’s response was only that it
could pay nothing at all. The application for adjournment must be
refused, and it is.
