CUTTACK: The Orissa High Court has given six weeks' time to the official liquidator appointed for the State-owned Orissa Textile Mills (OTM) to come up with a clear picture of the claims and receipts involving the company by engaging a chartered accountant.
The State government had winded up OTM at Choudwar in June 2001 and filed a petition for liquidation in the High Court. The court had subsequently appointed an official liquidator for the purpose. The liquidation process started under the company judge of the High Court in March 2002. The court had recalled an order for a fresh auction on June 28, 2022, after several attempts at auction of the OTM assets did not yield any fruitful result in all these years.
Justice Arindam Sinha issued fresh directions after taking note on Tuesday of the submissions of Advocate General AK Parija and official liquidator’s counsel AK Sethi. Parija appearing on behalf of the State submitted that the Handlooms Textiles and Handicrafts department is ready to put in Rs 150 crore for obtaining a permanent stay on winding up of the company. With Rs 5 crore having already been paid to the liquidator by Odisha Infrastructure Development Company Limited (OIDCOL), the State government has deposited Rs 30 crore and a balance deposit of Rs 115 crore is to be made, he submitted.
Sethi said that claims have been put in against the company. On a query from the court, he submitted that approximate, claims are in the region of Rs 184 crore. Parija pointed out that the figure includes government dues, which the State will absorb. On a further query from the court, Sethi submitted that the liquidator office has funds of Rs 35 crore, already deposited and kept in interest bearing account. He sought permission to appoint a chartered accountant from the liquidator's office.
Allowing it, Justice Sinha said, “The liquidator is granted leave to appoint chartered accountant upon brief made of the work to be done for negotiating fees to be paid. The proceeding is adjourned for six weeks to enable the liquidator to obtain a report from the chartered accountant.”
OTM was incorporated as a public limited company by Biju Patnaik and Pratap Singh in 1946 had started commercial production in 1950. In 1981 it was taken over by the State government and all the private shares were acquired.