HC sets liquidator for Real Value

MUMBAI, AUG 8: The two-judge bench of the Mumbai High Court has appointed a provisional liquidator for Real Value Appliances Ltd, the once ...

MUMBAI, AUG 8: The two-judge bench of the Mumbai High Court has appointed a provisional liquidator for Real Value Appliances Ltd, the once high-profile company of Phiroz Engineer engaged in marketing fire extinguishers and vacuum containers among other consumer products. The judges have also issued a show-cause notice to the principal officers of company as to why legal proceedings should not be initiated against them for making false and misleading statements in their affidavits.

Vardhman Spinning & General Mills had, in its petition, applied for winding up of the company, which however was dismissed by Justice BP Saraf and Justice Dr (Mrs) Upasani. The appeal came up for hearing and disposal on Friday before these two judges who have re-appointed the provisional liquidator and asked the latter to take charge forthwith of the affairs of the company.

“This judgement will surely prevent any further frittering away of the assets by the promoters,” said a top source from Dave & Girish & Co, representing a section of creditors. LIC is owed a sum of Rs 5 crore from Real Value Appliances, UTI Rs 1 crore and GIC Housing Finance Rs 50 lakh.

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The Engineers, facing a long list of creditors including Unit Trust of India, GIC Housing Finance, Life Insurance Corporation among others, have been allegedly avoiding the appointment of the official liquidator since the past few months through various ways, one of which was by pretending that the company was negotiating with foreign partners for a possible joint venture. Recently, it also said that since it has turned sick, it has applied to the Board of Industrial and Financial Reconstruction (BIFR) and therefore appealed to the court that the liquidator should not be appointed.

Earlier, on the application of the petitioners, Justice SM Jhunjhunwala had appointed a provisional liquidator on October 18, 1996.

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