The Hindu : Tamil Nadu News : High Court allows plea by theatres

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Tamil Nadu

Tamil Nadu

High Court allows plea by theatres

Special Correspondent

CHENNAI: The Madras High Court on Friday allowed an application by Theatre Raj and Theatre Jayaprada, represented by its partners, seeking condonation of a delay of 503 days in filing an application to set aside an earlier order of adjudication declaring them as insolvents.

In his order allowing the application, Justice V. Ramasubramanian said in view of all the payments made by the applicants, he was of the considered view that these payments should not prejudice the case of the applicants and it should be treated as a compromise.

The two along with one Vishal were adjudicated insolvents by an order dated September 18, 2006. The applicants had a time limit of 90 days to get the order of adjudication set aside. However, on the ground that a decree passed against them by the City Civil Court which formed the basis for the insolvency proceedings, which was an exparte decree and that they were pursuing the matter before the city civil court to have the decree set aside, the applicants filed the present application to condone the delay of 503 days in filing the application (seeking to set aside the order declaring them insolvents). The applicants filed the present application in the wake of an order of attachment of the theatres by the Chennai Corporation on account of alleged dues of arrears of property tax. On Friday, the applicants made the payments due to the Chennai Corporation, the petitioning creditor and the Commercial Taxes Department.

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