Subhiksha Trading Services has been told to present its trial balance accounts to a provisional liquidator (PL) appointed by the high court here and to certify the accounts before doing so.
Subhiksha has contested the appointment of a PL. It today asked the court to also stay an order to publish the institution of the PL in newspapers. The arguments on this are on. The company is to file a further reply on Wednesday.
The PL was appointed on March 31 on an application by Kotak Mahindra Bank. The order was issued by the court without hearing Subhiksha, which is another argument being used by the retailer to get it reversed. Kotak has lent Rs 40 crore to Subhiksha, which has no money now. The bank has filed a petition for the appointent a PL to terminate the firm.
Kotak said it welcomed the development and added the court and everyone else were entitled to know the details of the retail chain’s accounts, which haven’t been audited for 24 months. A PL, it noted, would take control and also audit the books.
In an e-mail response, Subhiksha’s promoter and Managing Director, R Subramanian, declined comment on the details. He said the company would consult other lenders and return with a suggestion on the way forward. The appointment of a PL, he added, would not affect the rights of the company management vis-a-vis the company except in respect of assets.