Setback for Sujana Chowdary by Hyderabad High Court

With Union Minister of State for Science and Technology, Sujana Chowdary owing Rs 92 crore to Mauritius Commercial Bank Ltd and the interests along with penalties rounding up to Rs 106 crore, the Hyderabad High Court on Tuesday admitted the petition filed by the Bank seeking liquidation of Sujana Universal Industries Ltd if the loan is not repaid immediately.

Alleging that the Sujana Industries has evaded the loan payment of Rs 106 crore, Justice A Rajasheker Reddy made the order in a petition filed by the bank. However, the counsel for Sujana contended that his client only stood as a guarantor and even though it did not availed any loan directly from the bank; they are prepared to repay the loan.

But stating that since Sujana Chowdary was the guarantor, his company will have to repay the amount, the court admitted the petition. Taking into account the admission of a company petition by a high court having serious consequences beginning with publication of an advertisement notifying liquidation of the company, the judge, deferred the statutory publication of the company petition for six months in order to enable Sujana Chowdary to settle the dues with the bank.