Earlier, summons were issued by the Mumbai high court against Jord Engineers and its directors on a winding-up petition filed by IIT Capital Services.

The Jord Engineers spokesperson said that the company was ready to first pay an installment of Rs 25 lakh by cheque before December 1998, and would make the full payment in January 1999. A statement by the business manager of IIT Capital Services Nayan Shah said that his firm had also filed a criminal case under Section 138 of the Negotiable Instruments Act against the company, its chairman and managing director Rakesh Chaturvedi and finance director JP Chaturvedi.

IIT Capital had financed a sum of Rs 50 lakh under their bill-discounting scheme to Jord Engineers, which is engaged in themanufacture and sale of process equipment such as vacuum filters, effluent treatment plants, air cooled heat exchange and high frequency resistance fin tubes. Jord Engineers defaulted in its payment of dues, and as a consequence, IIT Capital had filed a winding-up petition in the Mumbai high court. Justice DK Deshmukh of the court had, through an order on July 23, 1998, directed the company to pay the entire dues within a period of six months.

He also restrained the company from disposing of its assets. Jord Engineers is yet to repay the said amount to IIT capital.