No HC relief for City Limouzines. Court Refuses To Stay Criminal and Civil Proceedings Against The Firm
C Unnikrishnan I TNN
Mumbai: The Bombay high court on Wednesday refused to grant a stay on all criminal and civil proceedings initiated against City Limouzines, which defaulted on payments to the investors. The cheques issued by the company as returns on their investments began bouncing in August.
City Limouzines and its sister concern City Realcom had filed an application in the HC for amalgamation of these two companies.
The company had also urged the court to grant a stay on all criminal proceedings on account of cheque bouncing.
Justice S J Kathawala said that criminal proceedings cannot be a subject matter of application filed under the Companies Act. The court said the company has not given specific cases where they wanted a stay on civil proceedings.
The court also told the company’s counsel to conduct the meeting of creditors properly and advised that retired judge’s services are taken to conduct the meeting. City Group has convened a meeting of the creditors of City Realcom on October 14 and and another meeting of the creditors of City Limouzines on October 15 at Wilson High School, opposite V P Road police station.
Meanwhile, on Tuesday the city police was caught on the wrong foot in lower court in the City Limouzines case when officials, asked by the magistrate said it was investigating only a single FIR registered way back in 2007 and the duped investors — who turned out in strength in court — were not party to it.
The Economic Offences Wing (EOW) of the city police registered an FIR in 2007 based on the complaint of Jalandhar Pansare who lost Rs 55, 000 by investing in the company.
When the court asked whether the investors gathered in the court were victims in the case already registered, the police fumbled for answers and then replied in the negative. The matter has been adjourned to Friday.