The Calcutta High Court on Monday vacated the interim stay on a trial court winding up order on ailing tyre manufacturer Dunlop India and asked the official liquidator to take possession of the company's assets.
The order was passed by a division bench of Justices Asim Kr Banerjee and SK Sinha.
Dunlop counsel Atanu Roychowdhury said the official liquidator had been asked by the bench to take possession of the company's assets despite deposit of Rs10 crore by the management as directed.
Earlier, a division bench comprising Justices Girish Gupta and Tarun Kumar Das had asked the management to deposit Rs10 crore to show its intention to fulfil its obligations and their plea to be heard.
A trial court had ordered winding up of the company on January 31. An interim relief on the order was granted till February 18.
It is likely that the official liquidator will be able to take immediate possession of the company's assets and books of records unless the management moves the Supreme Court.
The management of Dunlop, which had set up its first factory at Sahaganj near here in 1936, said the company was waiting for a detailed order for its reaction.
EV Mathai and Sons and AK Kundu and Company, followed by 15 other creditors, had moved a winding up petition before the high court seeking liquidation of the company in 2008 over non-payment of dues.
In 2005, the Ruia Group, led by Pawan Kumar Ruia, had taken control of the ailing company.