MD of V2 Retail has been sentenced to three months civil imprisonment. Details below:
A managing director of a company has been awarded three months civil imprisonment by the Delhi High Court for the firm’s failure to file details of its assets in a matter pertaining to enforcement of an arbitral award.
Justice J R Midha said it was a fit case for exercise of powers
under the Code of Civil Procedure which provides for detention in civil
prison for not filing the affidavit as stipulated under the law.“In the facts and circumstances of the case, in exercise of
power under the Code of Civil Procedure, the Managing Director of the
judgment debtor (V2 Retail) be detained in civil prison for a period of
three months,” the court said and listed the matter for compliance on
October 28.The judge passed the order as the company had not filed the
affidavit and its managing director was also not present in court during
hearing of the execution petition filed by S S Enterprises which had
sought securing of the arbitral award in its favour by attachment and
sale of V2 Retail’s assets.S S Enterprises’ lawyer, Vijay Kasana, also submitted before the court that the amount payable by V2 Retail was Rs 73,90,650.
He also submitted the computation of the amount which the court
noted “has been verified by the accounts officer of this court to be
correct”.V2 Retail’s lawyer disputed the computation and submitted that the amount would be Rs 61,58,000.
The lawyer also told the court that the company would be
depositing Rs 50 lakh with the Registrar General of the high court and
therefore, the requisite affidavit was not filed.The court, however, said it was “not satisfied” with the
explanation given by V2 Retail’s lawyer and directed him to file the
computation of amount, as claimed by the company, on affidavit within a
week.
Markets do not seem to have noticed this news. Funny, since promoter being jailed usually results in the stock nosediving.
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