Shipping Logistics firm files legal suit against 20 Microns demanding 4.7 million rupees

VADODARA (BARODA) | MUMBAI | RAJKOT – In a regulatory filing submitted to the Indian Bourses, Vadodara (Baroda) headquartered 20 MICRONS Ltd has said of a shipping logistics service provider having filed legal suit in National Company Law Tribunal (NCLT) Ahmedabad, against the company demanding 4.7 million (46.67 lakh) rupees.

However, the Company does not see any significant impact of the litigation, the filing claimed.


BACKGROUND OF THE MATTER

The Company had taken services of CHA from Damani Shipping Pvt Ltd., Mumbai [Damani] and at their instance from its Associates inter-alia Fast Track Shipping & Logistics Services [Fast Track] in the year 2008.

The Company had been making payments regularly to DAMANI & at his instances and instructions to Fast Track Shipping too, from time to time.

As per the Company’s books/records, the Company was required to pay finally Rs. 12.21 Lakhs to Damani.

There were some differences of the amount payable by the Company to Damani and for the purposes in 2009 Damani and the
Company decided to have joint meeting to resolve the issues but Damani could not adhere to.

In December, 2012, Damani confirmed for a meeting as stated above but was not materialized and thereafter too the Company had been making efforts to remind Damani to resolve the issue and depute their representative.

Despite of the Company’s efforts and showing willingness to resolve the issue from time to time and after such a long time, Damani has filed the case against the Company with National Company Law Tribunal (NCLT), Ahmedabad, claiming Rs. 46.67 Lakhs including therein interest @18%.


THE COMPANY’s TAKE

The Company denied the same in its reply and conveyed of still open to resolve the issue amicably.

In the filing the company claims that it does not have any significant impact of the litigation in view of the following,

  • Company has and had alternative arrangements for availing services. of CHA, therefore do not have any impact on the business of the Company.
  • Liability for payment to the aforementioned CHA is already accounted in our books of the account.
  • Hence it will not have impact on financials of the Company.

The update on the legal suit filed against the company had hit the Indian Bourses, after the trading session was over on Monday.

It will be indeed interesting to see, how investors & traders react to the development, when trading floors of Indian Bourses reopen for business on Tuesday in India.


Follow DATELINE GUJARAT On :-

FacebookGoogle+LinkedinTwitterYouTube 


SHARE THIS NEWS ON :-