MUMBAI, JUNE 26: East West Travels and Trade Links Ltd, the largest private air taxi operator and travel agency in the country till a few years ago, is facing a winding up petition in the Mumbai High Court. The petition, accepted for final hearing by the HC, was filed by none other than the company's own registrar, Karvy Consultants Ltd.Similarly, DCL Polyester's winding up petition against Western Pacques Ltd (WPL) of the Nandan Gadgil group has also been accepted for final hearing.
These two petitions coming in the wake of the liquidation of Orkay Industries Ltd after the winding up petition filed by the Maharashtra State Financial Corporation is accepted by the court will add further to the woes of common investors and creditors who have invested in such companies.
The winding up petition against East West filed on May 2 1997 was accepted by the Mumbai High Court on March 26, 1998. Justice Y S Jahagirdar directed that the final hearing on the petition will be heard on July 10, 1998. Earlier DenaBank, State Bank of India, State Bank of Travancore, Vijaya Bank and Indian Bank had filed petitions for the refund of dues from the company. The court has already appointed a receiver to refund the dues to SBI and its subsidiary SBT.
The company which stopped operations a few years ago has a total outstanding of Rs 150 crore as per the 1995 balance sheet. Starting off as a travel agent, East West Travel & Trade Link incorporated in April 1982 was promoted by N A Wahid and his brother T A Wahid.
The company diversified into air taxi operations in 1992 after the government opened the skies to private operators and the company's public issue of 1.38 crore equity shares of Rs 10 each at a premium of Rs 30 aggregating Rs 55.20 crore was oversubscribed. The company share price which hit Rs 70 in October 1994 came down to Rs 3.25 in April 1998.
The company was embroiled in various controversies and its operations came to a halt with the gruesome killing of its Managing Director T A Wahid outside his Mumbaioffice. While the secured creditors are moving the court, the public shareholders who hold around 27 per cent stake in the company will have no option. The promoters and directors controlled about 60 per cent stake in East West.
Similarly, another winding petition against Western Pacques of the Western Gadgil group filed by DCL Polyesters has also been accepted by the Mumbai High Court on April 1, 1998 and is directed for final hearing on August 8, 1998.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
