SC asks IPL-ILCS JV to deposit Rs 60 cr
The Supreme Court on Thursday directed fertiliser company Indian Potash Ltd (IPL) and Indian Labour Cooperative Society (ILCS) to deposit Rs 60 crore to ensure they do not back out from the deal to revive Super Bazar.
By PTI |
NEW DELHI: The Supreme Court on Thursday directed fertiliser company Indian Potash Ltd (IPL) and Indian Labour Cooperative Society (ILCS) to deposit Rs 60 crore to ensure they do not back out from the deal to revive Super Bazar.
A bench headed by Justice B P Singh asked the joint venture to deposit Rs 60 crore as capital in an escrow account within two weeks. The court had on April 4 approved a joint proposal submitted by IPL-ILCS to revive ailing Super Bazar and had asked the government to facilitate the process.
The apex court today also directed the government to withdraw the liquidation process and appoint a board of administrators to look into the revival process within two weeks of IPL-ILCS depositing the money. The court also approved the changes inserted by the government in the modalities for revival of the cooperative.
Additional Solicitor General Amarender Saran said the government was not willing to withdraw the winding up order against Super Bazar until the IPL-ILCS deposited the committed amount toward capital.
While seeking quashing up of the winding up order, employee union counsel Anoop Chaudhari and Sarwa Mitter said the IPL-ILCS joint venture, should deposit the money for disbursement to meet the dues of workers and suppliers including arrears of provident fund.
ADVERTISEMENT
As per the changed modalities submitted by the central government, the Board of Administrators would redeem the entire government equity of Rs 116.40 lakh in favour of the Department of Consumer Affairs at the time of assuming office. According to the modalities submitted by Paul Joseph, senior economic adviser to the government, the Centre would not take any responsibility or issue any guarantee for meeting the requirement of funds for revival of the cooperative after the board assumed office.
The government would neither be responsible for any dispute nor payment of arrears in respect of shops, land and building allotted to Super Bazar after the bidder took over the assets and liabilities of the Cooperative, it said.
The bidder has to ensure that the entity continued to be governed under the Multi-state Cooperative Societies Act, 2002 and did not sell any property owned by Super Bazar before the lock-in period of five years expires, subject to obtaining clearance from the concerned agencies.
ADVERTISEMENT
Super Bazar employees union had filed a contempt petition last week against the government for failing to implement the apex court's orders with regard to revival of the ailing shopping cooperative.Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
