Liquidator to prepare Dunlop inventory

A counsel of the state government today told the court that Dunlop had sold some landed property,which Justice Sanjib Banerjee held as illegal. Dunlop sold the property when the case was pending in the high court,the counsel pointed out.

Hearing the arguments of the creditors and Dunlop,Justice Banerjee directed that a provisional liquidator would prepare an inventory of the assets and materials of the company.

Dunlop Tyres,a tyre manufacturing company in Sahagang,was closed in 1998. After Paban Ruia purchased the company in 2005,Dunlop was opened on several occasions but production was never started. The government under Mamata Banerjee also took the initiative to open the Sahagang factory but failed. In 2008,Madura Coats filed an application in the Calcutta High Court alleging that Dunlop had failed to clear dues amounting to Rs 100 crore. Ten other companies also filed applications asking for dues from Dunlop.

In January this year,Madura Coats filed another application seeking an order to wind up Dunlop and the dues of the company be cleared by selling the assets of the company. Madura Coats requested the HC to appoint a provisional liquidator to prepare an inventory of the company’s assets.

Ajay Chaudhury,counsel of Dunlop,said the company opposed the appointment of the provisional liquidator.

Drubajyoti Nandi,vice-president,Dunlop corporate communication,said the company would approach a division bench of the Calcutta High Court challenging the order of the single bench.

Advocate General Anindya Mitra said the state government was against the closure of any company as it led to unemployment. Mitra therefore opposed appointment of a provisional liquidator.

Over 700 Dunlop employees are now in limbo. Their salary payment was stopped long ago,but some of them used to paid by the management – a “discriminatory arrangement” as alleged by many.