New Delhi: Cash strapped retail chain Subhiksha on Friday said hearing on the petition for merger of the company with Chennai-based Blue Green Constructions at the Madras High Court has been deferred till 27 March due to the ongoing stir of the lawyers.
The Madras High Court was to hear the petition on Friday, but it had to be deferred due to the ongoing boycott of courts by lawyers, Subhiksha Trading Services Ltd said in a statement.
“A hearing was scheduled for today in respect of the merger petition of our company with Blue Green Construction at the Madras High Court. The matter has now been posted for 27 March 2009,” it added.
“No arguments were made as there is an ongoing boycott of the Madras High Court by the lawyers for the last few weeks and the boycott is still continuing,” the company said.
The merger petition pertains to the purchase of 40% stake in Blue Green Constructions for Rs2 crore by Subhiksha in 2008, followed by the retail chain’s decision to merge the two entities.
The issue has come to the forefront in the past couple of months after private equity player ICICI Ventures, which holds 23% stake in Subhiksha, moved the Madras High Court opposing the merger plan.
Subhiksha is currently undergoing a corporate debt restructuring (CDR) process to make it eligible for liquidity injection of up to Rs300 crore. Operations in its 1,600-odd stores are at a standstill presently due to cash crunch.