The Calcutta High Court on Friday extended the interim relief on the winding up order on Dunlop India till February 18 after the management promised to submit Rs 10 crore (Rs 1 million) as directed by the court.
The Dunlop management was initially directed to deposit the Rs 10 crore on Saturday, but after the Dunlop counsel stated that the next day being Saturday and a holiday for court, it was asked to complete the process by February 11.
With the order the official liquidator will not take immediate possession of the company's assets and books of records.
The Dunlop management's petition to consider the stay on the winding up order petition will be heard by the court on February 18.
The Bench of Justice Girish Gupta and Justice Tarun Kumar Das had not relaxed the amount of Rs 10 crore remarking that the amount was nominal to show interest to stop the winding up when the company had siphoned off assets of over Rs 2,000 crore (Rs 20 billion), though Dunlop pleaded it would pay it in instalments.
Dunlop had appealed before the division bench soon after the winding up order was passed by Justice Sanjib Banerjee on January 31.
Justice Banerjee had ordered winding up of Dunlop India Limited, which had set up its first factory at Sahaganj near here in 1936.
Justice Banerjee had directed the official liquidator to take immediate possession of the company's assets and books of records.
E V Mathai and Sons and A K 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.
Having led the tyre manufacturing industry for decades, the company went downhill since late 1990s. In 2005, the Ruia Group led by Pawan Kumar Ruia had taken control of the ailing company.