Wimpy's appeals against HC order

Fast food chain major Wimpy International Ltd today filed an appeal in the Delhi High Court against the order that admitted its winding up petition.

The next date of hearing is May 16. Earlier on September 29, 2005, Justice A K Sikri had admitted a winding up petition filed by Tarai Foods Ltd alleging Wimpy's was indebted to it and had not paid even after the notice was issued to it.

Wimpy's had submitted that the Tarai's petition was not maintainable as Tarai had failed to establish itself as a creditor and that the debtor company (Wimpy's) had no resources to discharge its liabilities.

It added that Tarai Foods was neither a creditor nor any amount was due. While laying a counter-claim of Rs 1.08 crore against Tarai Foods, Wimpy's said that it had assets worth crores and it could not be said that it was not in a position to discharge its liabilities.

While stating that it had been taking supplies with a lot of reservations, the fast food major said the judge had failed to appreciate that the French fries supplied by Tarai foods were of sub-standard quality affected its sales volume, image and profitability.

The judge had also failed to consider averments of status of Tarai Foods as BIFR had declared it a sick company in 2002. Hence, Tarai Foods had no locus standii to continue its winding up proceedings. However, the Tarai's recovery suit is already pending before a civil court.