The Hindu : New Delhi News : Court nod for revival of CRB Capital

Online edition of India's National Newspaper
Wednesday, Jan 25, 2006

New Delhi

New Delhi

Court nod for revival of CRB Capital

Staff Reporter

NEW DELHI: The Delhi High Court on Tuesday gave its green signal to a "modified scheme of compromise and/or arrangement'' for CRB Markets Capital Limited which would benefit 134,000 deposit holders, many of whom are senior citizens and widows, and about 36 cooperative banks.

Allowing the scheme, Justice Mukul Mudgal said that the deposit holders be paid within one year from the date of sanction of the scheme.

The Court ordered that widows, disabled persons, retired government servants and senior citizens (persons above 65) would get their entire deposit repaid without any ceiling within one year after the sanction of the scheme.

As for other unsecured creditors such as deposit holders and bond holders above the value of Rs. 5,000, they were to be paid an amount equivalent to 50 per cent of the principal amount in five equally instalments commencing from the date of sanctioning of the scheme and the balance 50 per cent of the principal amount was to be discharged in the form of allotment of shares of Rs.10 each at par as soon as approval from the competent authority was received, Mr. Justice Mudgal said.

So far as the cooperative banks are concerned, the Court directed the company to pay 25 per cent of their principal amounts within three months from the date of sanction of the scheme and the balance 75 per cent of the principal amount in 16 quarterly instalments,the order said.

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