Disposed

Shantilon Pvt.Ltd. v. State Bank of India & Ors.

Delhi HC5 Jan 2012W.P.(C)/8670/2010

Case brief

AI extract

What is this about?

This order granted one month's time to the petitioners to approach the Gujarat High Court for a rehabilitation scheme, staying coercive action by the State Bank of India during that period without deciding the merits.

What did the court decide?

One month's time granted to petitioners to move Gujarat High Court; State Bank of India directed not to take coercive action during this period.

Shantilon Pvt.Ltd. Vs State Bank of India & Ors. — Company and Corporate | Delhi HC (2012)

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WP (C) No.8670/2010& WP (C) No. 1619/2011 Signature Not Verified Digitally Signed By:AM UL YA

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theprimafacie opinion of the BIFR to wind up M/s. PrashantIndia Limited. I The orders havebeen challengedbothby M/s. PrashantIndia Limitedand M/s. ShantilonPrivateLimited,the strategicinvestor.

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We are also informed that pursuant to these orders, winding up 1 proceedings commenced before the learned Company Judge ofithe Gujarat High Court.

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4;;^

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What had persuadedus to issuenotice in these matters in respect of the strategicinvestoris that it had taken over 40 per cent of the liabilityof the sick company and had given OTS to the remaining secured creditors with two of the three units still functioning. The subsequent development is stated to be that I all the secured creditorshave agreed for a proposal for rehabilitation!of the sick company by agreeing to accept the amounts less than what is due to them. In i that contextrepeatedproposalshave been given to State Bank of In^ia but the final decisionis that the State Bank of India is not willingto accep;tthe OTS 1 proposal as given by the strategic investor and the company,ilt is the submission of the learned counsel for the strategic investor and the company that much water has flowed since the impugned order was passed and they are even willing to increase the amount from the earlier proposal of ?1.15 crore to ?2.00 crore. This-is so since all the secured creditors have assigned their debt to two strategic investorsand there are only two secured creditorswho have stated to have taken over 87 per cent of the debt (apart from S^I).

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We are of the view that the same is a matter to be examined by the State Bank of India and to take a commercial decision on this offer now given in the Court.

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Learned counsels for the Company and the strategic investor state that they will move the learned Company Judge of the Gujarat High Court for necessary orders giving appropriate scheme in view of changed 1 circumstances and that some time may be given to them to approach the GujaratHigh Court. j

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WP (C)No.8670/2010& WP (C) No.1619/2011

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1 Page 2 of 3

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We are inclined to accede to this request and grant one (1) month's time to the petitionersto move the Gujarat High Court for necessary orders during which period of time, the State Bank of India will not take any coercive action. We make it clear that such an order is not reflectiveon the merits of the controversy.

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The petitions and the applications stand disposed of.

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JANUARY 05, 2012 b 'nesh

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SANJAY KrSHAN KAUL, J. RAJIV SHAKDHER, J.

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WP (C) No.8670/2010 & WP (C) No.1619/2011

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Shantilon Pvt.Ltd. v. State Bank of India & Ors.

Case brief

What is this about?

What did the court decide?

Shantilon Pvt.Ltd. v. State Bank of India & Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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