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Madras HC appoints provisional liquidator for First Leasing

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Gireesh Babu Chennai
Last Updated : Jul 31 2014 | 11:09 PM IST
The Madras High Court has allowed an application of ICICI Bank Ltd to appoint a provisional liquidator for crisis-ridden First Leasing Company of India Ltd, a leasing firm founded by AC Muthiah along with Farouk Irani. A petition by the bank seeking winding up the company is under consideration of the Single Judge.

The bank counsel alleged company officials and employees colluded and stripped the company. At least two forensic reports have come out on the financial issues in the company - one from the Reserve Bank of India and another by an expert appointed by the company's board of directors.

A large number of employees had submitted their resignation letters and under this circumstances, the operations of the company had to be taken care by a provisional liquidator, he argued.

First Leasing senior counsel said while it was saddening that the 49-year-old listed company was in such a situation, the company was currently facing a situation in which most of the employees had left their job and the company was not in a position to pay the salary. It also has more than 10 bankers who have lent money to the company.

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First Published: Jul 31 2014 | 8:36 PM IST

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