InduSind
Bank to appeal against order
Our Banking Bureau
22 February 2002
 Kolkata:
InduSind Bank has decided to appeal against the verdict of the
Debt Recovery Tribunal (DRT) in a case relating to a payment
receivable from the Stock Holding Corporation of India (SHCIL).
 In a recent order passed
by it, DRT has upheld IndusInd Bank’s right to initiate civil
and criminal proceedings against SHCIL. It has also rejected SHCIL’s
petition that the original application filed by IndusInd Bank
before the tribunal is not maintainable against SHCIL.
But DRT has vacated its
own interim order that was passed on 8 January 2002 for attachment
of specific assets of SHCIL on the grounds that "the assets
and properties of SHCIL appear to be sound and satisfactory."
IndusInd Bank senior
vice-president (investment banking) V B Raju told presspersons
that the bank will go on to appeal against the vacation of the
order on attachment of specific assets of SHCIL. "The SHCIL
balance-sheet has been qualified by its auditors.  According
to us, it is not healthy. If SHCIL makes necessary provisions in
its balance-sheet, it will certainly not be strong enough to meet
our claims."
The total amount due from SHCIL is slated to be about Rs 26.5
crore, including an accumulated interest on the principal amount
of Rs 24.40 crore.
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