Bombay HC Issues Contempt Notice Against Promoter Of IT Company Varanium Cloud For Violating Court Orders To Repay Creditor, Leaving Mumbai

The Bombay High Court on August 12, issued a contempt notice against Harshwardhan H. Sabale, the promoter of IT company Varanium Cloud Ltd, due to his failure to pay rupees 20 crores and also for leaving Mumbai in breach of the Court's order.

The case against Sabale arose over non-payment of over Rs. 49.53 crores to his creditor. Earlier in March, the Court had issued a non-bailable warrant against Sabale for defaulting in this payment and for not appearing before the Court.

On August 09, Justice Abhay Ahuja granted Sabale an extension till August 12 to make the payment of 20 crores. The Court had postponed the issuance of a show-cause notice for contempt of its order.

However, as Sabale failed to make the payment and was absent from court on August 12, the Court issued a show-cause notice for contempt of its order.

“However, despite a second undertaking dated 9th August, 2024, to this Court to make payment of Rs. 20 Crs in favour of the Award Creditor and to remain present in this Court at 4.30 p.m. today and not to leave the jurisdiction of the municipal limits of Mumbai, the Respondent has breached the undertaking and this time in toto.”

It listed the matter for further hearing on 26 August.

Case title: Cherag Shah vs. Harshwardhan H. Sabale (Interim Application (L) No. 16702 Of 2023 In Commercial Execution Application (L) No. 16273 Of 2023)

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