The Company Law Board has directed Pure Drinks to pay up its outstanding dues to the depositors within the time frame as requested by Ajit Singh, its chairman and managing director, but with stringent riders.
According to the new repayment schedule as proposed by Ajit Singh and accepted by the Company Law Board, the company would be paying all its depositors outstanding interest for the period ended March 31, 1996 by May 17, 1997.
Pure Drinks has also committed to pay all its depositors outstanding interest for the period ended March 31, 1997, by the close of July 31, 1997, and also repay 35 percent of the principal amount to those depositors who have not already been paid.
However, CLB has kept pending a separate application by Pure Drinks submitted in March 1996 which requested for further extension of time up to September 1998 for repayment of the entire deposits.
The Board, which issued an order to this effect last month, has accepted the affidavit outlining the repayment schedule as submitted by Ajit Singh.
However, the Board has attached stringent conditions to the schedule which have to be complied by the soft drinks major.
It has directed Pure Drinks to "file an affidavit of compliance with regard to payment to all depositors in full who have claimed repayment under indigent circumstances provided they have attached sufficient proof of the same.
This affidavit shall be filed by April 30, 1997 after taking into account all the applications received up to April 26, 1997".
"The company shall continue to entertain applications for full repayment under indigent circumstances in future as well if satisfactory evidence is attached and shall make full repayment within 15 days of receipt of such applications", the CLB order further states.
Besides, the Board has also reiterated that Ajit Singh, the chairman and managing director, "is liable jointly and severally" for adhering to the repayment schedule as submitted to the Board and any default in repayment as undertaken by the chairman shall be considered as default on the part of the company and Ajit Singh himself, thereby attracting immediate penal action against them.
