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SC to hear Zuari Agro plea on Rs 20 cr deposit in Mallya's UB group firm

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Press Trust of India New Delhi
Last Updated : Feb 18 2019 | 8:45 PM IST

The Supreme Court Monday agreed to hear on February 20 the plea of Zuari Agro Chemicals Ltd, which had advanced Rs 20 crore as inter-corporate deposit (ICD) in 2012 to a United Breweries (UB) group firm in which fugitive Vijay Mallya has stakes.

ZACL has challenged in the apex court the Karnataka High Court's January 28 order which stayed a lower court's interim decision asking Mcdowell Holdings Ltd, a UB group firm, not sell or alienate its shares of other group firms.

"Is this Vijay Mallaya matter?," a bench comprising Chief Justice Ranjan Gogoi and Justice Sanjiv Khanna asked senior lawyer Mukul Rohatgi, appearing for ZACL. He replied in affirmative.

"We will take it up day after tomorrow," the bench said.

As per the appeal, after several renewals of the ICD, Mcdowell Holdings Ltd pledged certain shares of its group firm Mangalore Chemicals and Fertilisers Ltd (MCFL) to lending firm ZACL.

Even after the pledging of shares, the lending company said that the debtor firm owed it Rs 17.87 crore.

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ZACL went to the civil court and got an order asking Mcdowell Holdings Ltd, not to sell or alienate its shares in MCFL.

However, after the Karnataka High Court's stay on the order ZACL has moved the apex court.

The high court said the lower court's order was "a cryptic order bereft of any reason".

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First Published: Feb 18 2019 | 8:45 PM IST

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