• PAGE ONE
• INDEX
• HOME

HC admits winding-up petition against L&T

Our Bureau

MUMBAI, Nov. 29

THE Bombay High Court on Thursday accepted the winding-up petition filed by three hoarding and advertising agencies against engineering giant Larsen & Toubro Ltd. The court has given L&T three weeks to file an affidavit in reply.

The petition has been put high on board for December 19, according to court sources.

The agencies had filed a winding-up petition against L&T for non-payment of outstanding dues to the tune of about Rs 20 crore. The agencies have long-term outdoor media contracts up to 2007-08 worth over Rs 240 crore with L&T.

According to L&T sources, the company stopped payment against these contracts in August, alleging that the contracts were void ab-initio. Its contention is that the contracts were entered into with malafide intention by one of the companys then employee. The petiton filed in the Bombay High Court on November 27, under section 433 (1)(e) and (f) and section 434 of the Companies Act, seeks that L&T be wound up by and under the orders and directions of this honourable court.

The petitioners have also sought appointment of an official liquidator with all its assets, business affairs, books of accounts ... with all the powers under the provisions of the Companies Act, 1956. Pending appointment of the official liquidator, the p etitioners have asked for the appointment of a provisional liquidator.

The petitions have been filed by the law firms of Amarchand Mangaldas Shroff & Co, Daftary, Ferreira & Co and Prakash & Co on behalf of Mumbai-based Everest Media Pvt, Prime Displays and Abiz. The petitioners had earlier served notice on L&T under sectio n 434 on August 31 when L&T failed to pay up the dues inspite of assurances.