Spin-Cot Textiles admits liability of Rs 34.29 cr to NSEL
Dec 05 2013 , Mumbai
Spin-Cot Textiles is one of the defaulters of the Jignesh Shah-led NSEL which is facing problems in settling Rs 5,600 crore dues of some 13,000 investors.
The first installment would be paid on December 10 and the remaining installments on or before 10th of each succeeding month, Navin Choumal, lawyer of Spin-Cot Textiles Ltd, said last week.
NSEL filed a petition under section 9 of the Arbitration and Conciliation Act, seeking order to Spin-Cot Textiles to deposit Rs 38.25 crore in the court or furnish bank guarantee, and appoint a Court Receiver in respect of properties mentioned in the petition.
Last week, Justice R D Dhanuka, while disposing of the petition, directed both the parties to take appropriate steps for appointment of arbitrator.
If Spin-Cot Textiles makes three defaults in paying installments as stated, a Court Receiver of the Bombay High Court would be appointed, the Judge said.