HC appoints its official liquidator for Paramount Airways1 min read . Updated: 19 Apr 2013, 11:09 PM IST
Ex-directors of the firm are directed to file their statement of affairs before the official liquidator within a period of 21 days
Chennai: The Madras high court has appointed its official liquidator as the “provisional liquidator" to take charge of the assets of Paramount Airways for non-payment of its dues.
After hearing the petitions filed by some private firms, justice S. Rajeswaran said: “The official liquidator, high court, Madras, is appointed as provisional liquidator and is directed to take charge of the assets of the respondent company (Paramount Airways)."
The ex-directors of the company are directed to file their statement of affairs before the official liquidator within a period of 21 days, he said.
While stating that documents filed by Paramount Airways show that the company has “incurred" huge losses and had “not" made any payments despite repeated requests, the judge said, “it is construed from facts and documents produced before this court, the respondent company has become commercially insolvent and they are unable to pay their dues to the petitioner herein".
Noting that Paramount Airways has accepted “liability" and the airline did not come forward to make the payments despite repeated reminders and personal visits by the petitioners, the judge said, “the respondent is also found to have not complied with the statutory obligation of filing the accounts before the registrar of companies".
“Even before this court, the counsel representing the respondent took time on the ground that the matter was being compromised between the parties. But, till date, the amounts due to the petitioner have not been paid by the respondent," the judge said.
“On the other hand, they (Paramount Airways) only seek further time for settling their dues to the petitioners herein," he said.