Bombay High Court asks Torrent Pharmaceutical to deposit money owed by Elder Pharmaceutical

MUMBAI: The Bombay High Court has directed Torrent Pharmaceutical to deposit money owed by Elder Pharmaceuticals to lenders in the court in a case relating to non-repayment of loans by the Mumbai-based Elder.

In December 2013, Ahmedabad-based Torrent Pharmaceuticals had agreed to buy Elder Pharma’s branded domestic formulations business in India and Nepal for around Rs 2,000 crore. But Monet Securities , one of the lenders to Elder, approached the court claiming non-repayment of loans worth Rs 52.70 crore by Elder.

“The aforesaid third party (Torrent Pharma) shall deposit the money in court to the extent of plaintiff ’s (Monet) claim instead of paying the defendants (Elder) upon the transaction that are entered into by and between the defendant the third party,” said Justice Roshan Dalvi while passing the order.

“The plaintiff is at least entitled to be secured of its admitted claim.” The order was passed on April 25.