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Delhi High Court orders payment to depositors
Dimapur, Jan 20 (NPN):
Published on 20 Jan. 2011 10:41 PM IST
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The division bench of Delhi high court, while hearing the company appeal filed by Reserve Bank of India against the order of 24/1/2006 sanctioning the revival scheme of CRB Capital Markets Ltd. formed a disbursement committee to release the payment to small investors of the company who are waiting since 14 years (Ram Vanwas).
The bench headed by Justice Gita Mittal passed an interim order to release the payment of about `97 crores to the small depositors and appointed S.K. Tandon, (retd), additional district judge Delhi as Chairman, Mamta Mehra, advocate, Sh. P.K. Sharma, (retd) Joint Registrar of Delhi High Court, Sh. C.R. Bhansali, propounder of the revival scheme, and Riasuddin, Dy. Official Liquidator as a Member of the committee.
Delhi high court in a press release said that any authorized representative from Reserve Bank of India can join the proceedings of the disbursement committee. The division cench also ordered that the committee shall complete its proceedings within 6 months from the date of its first public notice.
Further, during the hearing of the appeals, the court permitted the official liquidator and RBI to file a reply to the affidavit filed by C.R. Bhansali and that only official liquidator has filed its response. The court also observed that the harm which would be resulting on account of delayed payments to such investors may have invested their life savings with the company cannot be reversed and may be irreparable.
Sudhanshu Batra, senior advocate on behalf of the company contended that the secured & unsecured creditors had consented to the scheme propounded and sanctioned by the company court.
He also raised disputes to the report filed by the official liquidator that an amount of `5 crore has been apportioned towards expenses of the company and towards common pool. He said that the funds of the company could have been utilized only towards expenses, which have been actually incurred by the official liquidator towards steps in the proceedings relating to the affairs of the company alone.
Prag Tripathi, additional solicitor general also suggested that the court may direct that subject to rejected claims producing the original fixed deposit receipt issued by the company and furnishing proof of their identity, the Committee which may be appointed for disbursement may scrutinize, decide and disburse the amounts ascertained to rejected claims as well.
The suggestion was also accepted by all the parties.
During the course of argument, it was also observed difficulty expressed on behalf of RBI to nominate a representative of the committee.
In view of the inability from RBI to name a representative to be associated with the work of the committee, the court left it to its discretion to nominate its representative in the committee.

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