Mumbai-based Sundaram Multi Pap today said that it will appeal against the Bombay High Court’s verdict asking the company to pay Rs 2.92 crore to ICICI Bank in a dispute over forex derivative contracts between the parties.
Sundaram Multi Pap Chairman Amrut Shah told Business Standard that the original case filed by his company against ICICI Bank for mis-selling forex derivative contract is still pending and is likely to come up for hearing next month. “Based on the latest order, we do not consider this as a debt. We will appeal against this order,” he said.
According to the Bombay High Court order, the company has to either pay the bank the said loss amount or the bank will be allowed to wind up the company.
“Our asset base is Rs 80 crore with 600 workers. We have made a profit of Rs 8 crore. How can a company be wound up over a dispute of Rs 2.92 crore?” Shah asked.
Sundaram Multi Pap is a Bombay Stock Exchange-listed company manufacturing education paper stationery and is not in any way related to South-based TVS Group, which has many group companies bearing the name Sundram or Sundaram.
However, one TVS Group company — Sundaram Brake Lining — is also involved in a similar legal tangle with Kotak Mahindra Bank over a similar issue involving losses suffered on account of forex derivative contracts the bank had sold the company.
In August this year, the Madras High Court had directed Sundaram Brake Linings to take up its case against Kotak Mahindra Bank with the arbitrator as specified in the agreement between the parties.
Sundaram Multi Pap’s stock price closed 1.26 per cent higher at Rs 8.86 today on BSE. The 52-week high for this stock was quoted on January 1, 2008 at Rs 29.50. The company had filed its first suit against ICICI Bank in December 2007.
