Madras HC Appoints Panel Led By Former Chief Justice Of J&K HC To Administer Firm [Read Order]

The Madras High Court has constituted a panel led by a former Chief Justice of Jammu & Kashmir High Court to administer the affairs of Disc Lead India Limited.

The Bench comprising Chief Justice Indira Banerjee and Justice M. Sundar held it appropriate for the panel to be led by Justice N. Paul Vasanthakumar, in the case which concerns payment of deposits to the tune of Rs. 1,137 crore made by nearly 12 lakh investors.

The panel will also comprise of Mr. B. Kumar and Mr. M.S. Krishnan-- the amicus curiae in the case, Senior Advocate C. Manishankar, competent authority under the Tamil Nadu Protection of Interests of Depositors (In Financial Establishments) Act, 1997, two nominees of the State Revenue Secretary and a nominee of the SEBI Regional Director.

The Court noted that the schemes, which were started in 2006, should have concluded in the year 2011. It further took note of the action taken against the company by SEBI, which had directed the company and its Directors to jointly and severally refund the amounts collected under the schemes and to wind up all such schemes.

Thereafter, emphasizing on the need for constitution of such Committee, it observed, " Having regard to the number of depositors and the huge stakes involved, it would be a mammoth task to identify the investors, identify the lands that have been purchased, value the land and realize the actual value by way of sale of properties."

The Bench clarified that the Committee would be free to engage Chartered Accountants, valuers and lawyers. Further, all investors of the company have been directed to apply to the Committee with details of their investments.

"The Committee shall take necessary steps to identify the properties of the Company, its sister concerns, Directors and transferees, to ascertain the location, marketability and title thereto and thereafter proceed to sell the properties," the Court further directed.

The amounts realized from the sale proceeds have been directed to be deposited in a special account opened for this purpose. Further, the company, its directors and its sister concerns have been restrained from transferring or alienating any property and assets, except through the Committee.