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Sirsa dera firm seeks HC approval to settle ₹11cr dues with auction money

December 04, 2018 06:48 AM

COURTESY TOI DEC 4

Sirsa dera firm seeks HC approval to settle ₹11cr dues with auction money
Company’s Seized Goods Already Sold By Bank
Ajay.Sura@timesgroup.com

Chandigarh:

A company related to the controversial Dera Sacha Sauda (DSS) has staked claim to the money derived from the auction of dera goods by a bank. The company, MSG All Trading (P) Limited, has sought permission from the Punjab and Haryana high court to settle its Rs 11 crore liabilities to the bank and other creditors from the amount realized through the auction.


The accounts and properties of the company had been seized following the violence that followed the conviction of the dera head, Gurmeet Ram Rahim Singh, in rape cases in August 2017.

In a fresh application filed by the company through its representative Sukhveer Kaur, it has been submitted that the company is not owned, managed or controlled by the dera and wants to discharge its liabilities to the bank and other business creditors, including statutory tax payments.

“The applicant is suffering additional monetary burden as interest is accruing on dues to creditors... The applicant prays for permission to settle the dues of the bank well as its other creditors from the Rs 8.60 crore realized through auction of the hypothecated goods, after the exact amount of dues has been settled and determined,” its application said.

In its May 25 orders, the HC had allowed the Oriental Bank of Commerce (OBC) to auction hypothecated goods of the dera to realize its loan amount. The HC had directed the bank to keep the money, collected through auction, in fixed deposits till the matter is finally decided by the HC. The OBC had conducted two public auctions and sold the hypothecated goods for Rs 5.98 crore and Rs 2.62 cr.

In its applicantion, the MSG has now argued that the hypothecated goods auctioned by the OBC belonged to it-.“No default has been committed by the applicant and there was no notice to the applicant by the bank. The account of the applicant has also not been declared to be non-performing asset. Further the application was not a party to the petition and had no notice of the application due to which company could not respond to the application filed by OBC before the bank,” counsel for MSG has informed the HC.

The application would now come up for hearing on January 28.

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