Winding-up petition filed in court against Satyam Computer Services by Ekadanta Greenfields

Jan 07 2013, 19:22 IST
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SummaryFirm alleges money was lent to Mahindra Satyam but not paid back, despite debt acknowledgement.

Ekadanta Greenfields Pvt Ltd, a subsidiary of IL&FS Engineering and Construction Co Ltd, filed a winding-up petition in Andhra Pradesh High Court against Satyam Computer Services Ltd (now Mahindra Satyam) alleging default in payment of nearly Rs 23 crore.

The court has posted the hearing for January 29.

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The petitioner alleged that in the course of business it lent Rs 36.50 crore as temporary advances to Mahindra Satyam on various dates through cheques drawn on Axis Bank.

A part repayment of Rs 17.92 crore was made by SCSL to Ekadanta in November 2008 by way of 3 cheques clearly admitting the debt due, the petition said.

When contacted, MSat spokesperson refused to comment on the issue.

Following an admission of multi-crore accounting fraud by SCSL founder Chairman Ramalinga Raju in January 2009, the government stepped in and set up a new board.

Later, Tech Mahindra bought 46 per cent stake in SCSL through a formal public auction process.

Tech Mahindra took over reins of the company in April 2009 and re-branded it as Mahindra Satyam.

"Thereafter, despite repeated reminders and requests made by the Petitioner, the Respondent Company did not repay the remainder of the amount due to the Petitioner Company.

"Respondent Company is indebted to the Petitioner Company a sum of Rs 18.58 crore and interest and damages from 20th September, 2008 onwards," Ekadanta alleged.

"It is submitted that by part repaying the monies advanced by the Petitioner Company, the Respondent Company has admitted and acknowledged the debt owed by it to the Petitioner Company," it further said.

However, SCSL, after being taken over by the Mahindra Group, said the balance amounts demanded by Ekadanta were part of an investigation by government agencies and that they were in the process of obtaining the relevant details.

Subsequently, MSat issued a reply notice in November 2009 in which it denied repayment on various grounds.

Ekadanta said the Financial Statements of MSat for 2009-10, 2010-11 and 2011-12 have constantly classified the amounts owed to it (together with other amounts received by MSat from 36 other companies, which have filed similar cases) in an unexplained account known as 'Amounts Pending Investigations Suspense Account (Net)'. The account is classified as a "liability", it added.

"MSat is bound and liable to pay a sum of Rs 22.86 crore as on date of filing the suit for recovery (inclusive of Rs 18.58 crore) as

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