InduSind Bank to appeal against order
By Our Banking Bureau | 22 Feb 2002
In a recent order passed
by it, DRT has upheld IndusInd Banks right to initiate civil
and criminal proceedings against SHCIL. It has also rejected SHCILs
petition that the original application filed by IndusInd Bank
before the tribunal is not maintainable against SHCIL.
But DRT has vacated its own interim order that was passed on 8 January 2002 for attachment of specific assets of SHCIL on the grounds that "the assets and properties of SHCIL appear to be sound and satisfactory."
IndusInd Bank senior vice-president (investment banking) V B Raju told presspersons that the bank will go on to appeal against the vacation of the order on attachment of specific assets of SHCIL. "The SHCIL balance-sheet has been qualified by its auditors. According to us, it is not healthy. If SHCIL makes necessary provisions in its balance-sheet, it will certainly not be strong enough to meet our claims."
The total amount due from SHCIL is slated to be about Rs 26.5 crore, including an accumulated interest on the principal amount of Rs 24.40 crore.
