A US-based company, Phosphate Chemicals Export Associations Inc, has filed a wind-up petition against the G P Goenka group flagship Duncans Industries Ltd for recovery of dues amounting to over $3 million in the Calcutta high court.
Justice Girish Gupta on Monday adjourned the case for two weeks and asked Duncans Industries to submit a proposal to pay the creditor.
P C Sen and Debansu Basak appearing for Duncans and Sudipta Sarkar and Bikash Ranjan Bhattacharyya appearing for four employees unions opposed the winding up petition and sought some more time so that the company was able to pay the creditor.
It was stated by the company that the secured creditors and other financial institutions were working to restructure the finances of the company.
The foreign company was based at Lake Forest, Illinois, in the state of Delaware, USA. It said in its petition that Duncans had entered into an export contract with it on June 28, 2001 for supply of 30,000 tonnes di-ammonium phosphate.
The total value of the consignment was $5.5 million payable by the Duncans within 180 days of the date of bill of lading to the creditor's bank account with Bank of New York.
The consignment was received by Duncans. The payment became payable on February 1, 2002.
Anindya Mitra and Chandranath Mukherjee, counsel for the creditor, argued that on June 18, 2002, the creditor received part payment of $2 million from Duncans.
It was argued that poor financial condition had forced Duncans to close down its factory at Kanpur, UP.
Duncans owed huge amounts to other creditors, including government authorities.
The financial condition of the company was worsening by the day with no chance of revival, the counsel alleged.