Garware Marine Industries Ltd. Faces Alleged Lease Rental Default of Rs. 3.54 Cr.
Garware Marine Industries Ltd. has received a notice from the Deputy Superintendent of Police, Economic Offences Wing-Il, Chennai, alleging failure to repay equipment lease rentals amounting to Rs. 3,54,83,661.50 under an Equipment Lease Agreement. The Company has been directed to appear before the authority for explanation within 15 days from receipt of the notice. There is an ongoing litigation involving Integrated Finance Company Limited (IFCL) and the Company for recovery of machinery lease rent. The Company had placed a deposit of Rs. 30 Lakhs in the Hon. High Court of Madras and filed a suit against IFCL for the recovery of Rs. 1.93/- cr. together with interest @ 18%. Both suits are pending hearing before the Hon. High Court of Madras. The management is evaluating the matter and seeking legal advice to respond appropriately.
Key Highlights
- Garware Marine Industries Ltd. has received a notice from the Deputy Superintendent of Police, Economic Offences Wing-Il, Chennai for alleged failure to repay equipment lease rentals amounting to Rs. 3,54,83,661.50.
- The Company has been directed to appear before the authority for explanation within 15 days from receipt of the notice.
- There is an ongoing litigation involving Integrated Finance Company Limited (IFCL) and the Company for recovery of machinery lease rent.
- The Company had filed a suit against IFCL for the recovery of Rs. 1.93/- cr. together with interest @ 18% in the High Court of Bombay.
- Both suits are pending hearing before the Hon. High Court of Madras.