Kolkata firm moves SC against Metro Cash and Carry India

NEW DELHI: Kolkata-based Kathleen Vyapaar Pvt Ltd (KVPL) has moved the Supreme Court seeking to restrain retail company Metro Cash and Carry India Pvt Ltd from "fradulently" encashing a Rs 2-crore bank guarantee furnished by the firm in a land deal.

A bench headed by Chief Justice K G Balakrishnan refused to give any interim relief and posted the matter for hearing on April 24, the notified date.

Challenging the Calcutta High Court judgement that vacated a status quo order of a lower court in respect of the bank guarantee, KVPL expressed fear that Metro Cash and Carry India Pvt Ltd (MCCI) might encash the bank guarantee fradulently, which would put it to a great disadvantage in equity.

The bank guarantee was furnished by KVPL after MCCI advanced earnest money as part of consideration money of around Rs 31.75 crore towards purchasing land.

According to the firm, it had complied with all the formalities but MCCI was now backing out on the pretext of "recession and global meltdown".

The Kolkata firm said it had spent around Rs 15 crore for the acquisition of property for MCCI, which had given assurance for all other requisitions.