Zenith Infotech loses liquidation appeal

MUMBAI: Zenith Infotech, which is facing a winding up petition from its foreign lenders, has lost its high court appeal challenging the liquidation order, the latest setback for the software firm which has been battling allegations of serious corporate governance slippages.

At the end of last month, the high court admitted a winding-up petition filed by foreign lenders and also appointed advocate Salil Shah as a provisional administrator of the liquidation. The court had also directed lenders to publish the advertisement about the winding-up petition.

On Tuesday, the division bench dismissed Zenith’s appeal saying, “we are not inclined to stay the operation of the order, in so far as the appointment of the administrator is concerned. However, we direct that for a period of four weeks from today, the issuance of an advertisement of the admission of the petition shall stand stayed.”