Published On : Mon, Nov 23rd, 2015

HC asks Neco Industries to provide guarantee of Rs. 105 cr

Nagpur: The Nagpur bench of the Bombay HIgh Court has asked NECO Industries to provide guarantee to the tune of ` 105 crores. Also, the value of the property given as guarantee should be assessed by a chartered accountant of the company who will certify the same, directed the court further.

The court has further directed that the director of Neco Industries Arvind Jaiswal should provide a guarantee that he would not take any loan or financial dues on the property guaranteed without the prior permission of the court.

The single bench of Justice Z A Haq had issued these orders on a writ petition filed by director of Corporate Ispat Alloys Limited (CAL) Manojkumar Jaiswal on October 15 last.

It may be noted that Neco Industries owes about ` 102 crore to the Corporate Ispat Alloys Limited. However, even after repeated demands and requests, Neco Industries failed to deposit this amount with them. The CAL had issued notice to Neco on March 2015 without any response after which a writ petition was filed by CAL.

The director of Neco Industries Arvind Jayaswal and 9 others had filed an application asking to transfer the matter to a tribunal in 2011. Accordingly, a tribunal under former justice Vijay Daga was constituted earlier with the permission of both the contesting parties.