Punjab Meats ordered to pay up Rs 27-cr debt

Source :IE:April,23,2011
 

In a blow to Punjab Meats Limited (PML), a company owned by Dr AS Bindra, the Punjab and Haryana High Court has given it a month’s time to repay a loan of more than Rs 27.25 crore to Assets Reconstruction Company of India Limited (ARCIL).

If the loan is not paid within a month, the High Court has ruled, an appeal filed by PML challenging the orders of Debt Recovery Appellate Tribunal (DRAT) will be deemed to have been dismissed. DRAT had passed an order in favour of ARCIL allowing it to recover the loan. DRAT, last year, had ruled that if the debt is not paid, ARCIL will be at liberty to take possession of PML.

Aggrieved, PML had moved the High Court which had ordered status quo on DRAT directions. The said appeal is pending before a single Bench. On the other hand, ARCIL had filed an appeal against the single bench’s order.

A division bench of the High Court on Friday allowed the appeal filed by ARCIL wherein it sought quashing of status quo granted by the single Bench. With the division Bench allowing an appeal filed by ARCIL, the company will be at liberty to take possession over PML if the industry fails to pay the loan within a month. It might be mentioned here that the High Court, on several occasions, had slammed PML on account of non payment of several crores by the industry despite repeated directions. The Court had asked the company to prove its bonafides.