Legal6 May 2026, 11:12 am
SEPC Ltd: Madras HC Interim Directions on Trust Account
AI Summary
The Hon'ble High Court of Madras passed an order on April 30, 2026, regarding E.P.Nos.7 of 2024, 91 & 92 of 2023, 15 & 16 of 2025. The order permits the consortium of banks to appropriate up to ₹15.69 crore from the Trust & Retention Account towards dues under the approved resolution plan. SEPC Limited is allowed to utilize up to ₹2 crore for salary payments. Twarit Consultancy Services Pvt. Limited is directed to deposit ₹2.5 crore with the Registrar General and file an affidavit regarding the source of funds for ₹7.5 crore per quarter. The matter is posted for further hearing on June 23, 2026. SEPC Ltd. states there will be no financial impact on the company due to an indemnification agreement.
Key Highlights
- Madras HC allows banks to appropriate up to ₹15.69 Cr from Trust Account.
- SEPC Ltd. can use up to ₹2 Cr for salary payments as per court order.
- Twarit Consultancy Services to deposit ₹2.5 Cr with the Registrar General.
- Next hearing is scheduled for June 23, 2026.
- SEPC Ltd. claims no financial impact due to indemnification agreement.