SC allows IPL to revive Super Bazar
SC allowed Indian Potash Ltd to revive Super Bazar after it expressed desire to go alone in the process.
By PTI |
NEW DELHI: The Supreme Court on Tuesday allowed Indian Potash Ltd, one of the co-bidders that offered to revive shopping cooperative Super Bazar, to deposit Rs 60 crore after it expressed desire to go alone in the process.
A vacation bench comprising Justice Tarun Chatterjee and Justice P K Balasubramayam allowed the plea of Indian Potash asking it to deposit a cheque of Rs 60 crore with the court.
Solicitor General G E Vahanvati said the Centre would decide on whether to allow IPL to go alone with the revival process before July 12, the next date of hearing.
IPL counsel Kailash Vasudev said IPL was ready to go alone to revive the shopping cooperative as its co-bidder ILCS had backed out from its commitment to bring in the desired funds. It also said it was ready to invest the money and was committed to revive Super Bazar.
While seeking a direction to the Ministry of Consumer Affairs to appoint its nominees only, IPL said the May 17 order should be modified to the extent that board of administrators should comprise of nominees of IPL only as the ILCS nominee would affect the interests of the sole investor and hamper the smooth revival of the cooperative.
"The withdrawal of ILCS from its commitment does not dilute the commitment of IPL for revival of Super Bazar. As such, it becomes just and expedient that both the nominees on the board of administrators should be of IPL," it added.
"The recent developments established that ILCS is involved in dubious transcations and had not made the joint bid bonafidely and has backed out from its commitment at the intial stage itself," IPL's application said.
IPL further said ILCS, which was also distributor of its products, had been carrying out various unwarranted activities in its dealings with various third parties.
The apex court had on April 4 cleared a proposal by IPL-ILCS to revive Super Bazar. It had also asked the government to facilitate the process by withdrawing the liquidation process and appointing a board of administrators to look into the revival process.
The court on May 17 had directed the IPL-ILCS combine to deposit Rs 60 crore as capital in an escrow account to ensure they do not back out from the deal to revive Super Bazar.
A vacation bench comprising Justice Tarun Chatterjee and Justice P K Balasubramayam allowed the plea of Indian Potash asking it to deposit a cheque of Rs 60 crore with the court.
Solicitor General G E Vahanvati said the Centre would decide on whether to allow IPL to go alone with the revival process before July 12, the next date of hearing.
IPL counsel Kailash Vasudev said IPL was ready to go alone to revive the shopping cooperative as its co-bidder ILCS had backed out from its commitment to bring in the desired funds. It also said it was ready to invest the money and was committed to revive Super Bazar.
While seeking a direction to the Ministry of Consumer Affairs to appoint its nominees only, IPL said the May 17 order should be modified to the extent that board of administrators should comprise of nominees of IPL only as the ILCS nominee would affect the interests of the sole investor and hamper the smooth revival of the cooperative.
"The withdrawal of ILCS from its commitment does not dilute the commitment of IPL for revival of Super Bazar. As such, it becomes just and expedient that both the nominees on the board of administrators should be of IPL," it added.
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"The recent developments established that ILCS is involved in dubious transcations and had not made the joint bid bonafidely and has backed out from its commitment at the intial stage itself," IPL's application said.
IPL further said ILCS, which was also distributor of its products, had been carrying out various unwarranted activities in its dealings with various third parties.
The apex court had on April 4 cleared a proposal by IPL-ILCS to revive Super Bazar. It had also asked the government to facilitate the process by withdrawing the liquidation process and appointing a board of administrators to look into the revival process.
The court on May 17 had directed the IPL-ILCS combine to deposit Rs 60 crore as capital in an escrow account to ensure they do not back out from the deal to revive Super Bazar.
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