Jisco, JVSL merger hearing on July 5

The merger hearing of Jindal Iron and Steel Company (JISCO) and Jindal Vijayanagar Steel Ltd (JVSL) was taken up for hearing by justice J N Patel in the company court today.

Balli Kloeckner GmBH, the German-based trader in steel products which had put up a claim of over $22.8 million interest on JISC has been asked by the court to consider the option of appointment of an independent chartered account for evaluating the accounts of the amalgamated entity.

The independent auditor can then make a report to the court as to whether or not the amalgamated entity could take care of the interest of the creditor. The hearing for the creditor's view has been deferred to Monday (July 5).

As far as income tax is concerned, Beni Chatterjee, counsel for the income tax department, told the court that he has serious objection against any kind of merger as it will amount to the non-existence of Jisco.