A number of lenders, including individual depositors and companies, have filed cases against Birla Power Solutions, a maker of portable gensets owned by Yashovardhan Birla, an industrialist known for his flamboyant lifestyle, after the company defaulted on payments.
A company official attributed the problem to labour unrest which had crippled production at its factory in Uttarakhand. PVR Murthy, Group Director, Birla Power said that the company has had some defaults as it had labour issues for an year at the power plant.
But, the defaults are not beyond control and the company will repay it by December as it has reached a settlement with its labourers.'The defaults were on a range of instruments, including fixed deposits payable to retail investors, as well as inter-corporate deposits and bills of exchange.
PD Sekhsaria & Co, a Mumbai-based manufacturing company, filed a petition in the Bombay High Court to wind up Birla Power as a cheque drawn on Indian Overseas Bank, issued on August 11, for Rs 10 lakh bounced.
Niranjan Parekh, solicitor at law firm Mansukhlal Hiralal & Company, representing PD Sekhsaria, told a business newspaper that he has filed a case under Section 138 of Negotiable Instruments Act as well as a winding-up petition against Birla Power for defaulting on inter-corporate deposits of his client.