Seize passport of defaulter, High Court tells bank
Legal Correspondent
CHENNAI, FEBRUARY 17, 2019 00:00 IST
KAPL moves court against a firm withwhich it had a business agreement
Taking serious note of a series of cases related to bank loan defaulters flying abroad without discharging their liabilities, the Madras High Court has directed a nationalised bank to take possession of the passport of a loan defaulter whose pharmaceutical firm owed over Rs. 755 crore to the financial institution.
Justice S. Vaidyanathan issued the direction while passing interim orders on a company application filed by Karnataka Antibiotics and Pharmaceuticals (KAPL), a central public sector enterprise, against Arvind Remedies, a company under liquidation, situated at SIDCO industrial estate Kakkalur in Tiruvallur district.
KAPL had sought a direction to Punjab National Bank and an Official Liquidator to hand over its raw materials, packaging materials and finished products that were lying on the premises of Arvind Remedies.
On going through the case papers, the judge found that KAPL had entered into an agreement with Arvind Remedies in 2016.
As per the agreement, KAPL agreed to supply approved drugs in bulk along with packaging materials to Arvind Remedies, which had the obligation of turning them into finished products and supplying them to KAPL.
It was also claimed that the agreement was entered into without being aware of the poor financial situation of Arvind Remedies.
Two government organisations are fighting while the white-collared criminals are trying to escape
Legal Correspondent
CHENNAI, FEBRUARY 17, 2019 00:00 IST
KAPL moves court against a firm withwhich it had a business agreement
Taking serious note of a series of cases related to bank loan defaulters flying abroad without discharging their liabilities, the Madras High Court has directed a nationalised bank to take possession of the passport of a loan defaulter whose pharmaceutical firm owed over Rs. 755 crore to the financial institution.
Justice S. Vaidyanathan issued the direction while passing interim orders on a company application filed by Karnataka Antibiotics and Pharmaceuticals (KAPL), a central public sector enterprise, against Arvind Remedies, a company under liquidation, situated at SIDCO industrial estate Kakkalur in Tiruvallur district.
KAPL had sought a direction to Punjab National Bank and an Official Liquidator to hand over its raw materials, packaging materials and finished products that were lying on the premises of Arvind Remedies.
On going through the case papers, the judge found that KAPL had entered into an agreement with Arvind Remedies in 2016.
As per the agreement, KAPL agreed to supply approved drugs in bulk along with packaging materials to Arvind Remedies, which had the obligation of turning them into finished products and supplying them to KAPL.
It was also claimed that the agreement was entered into without being aware of the poor financial situation of Arvind Remedies.
Two government organisations are fighting while the white-collared criminals are trying to escape
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