MHC allows ED to issue fresh insolvency notice to TTV
However, TTV moved the Madras High Court, challenging the insolvency notice contending misuse and abuse of power by the ED. claiming that the agency could not invoke insolvency law.
TTV Dhinakaran. File photo
CHENNAI: The Madras High Court has allowed the Enforcement Directorate (ED) to issue a fresh insolvency notice against Amma Makkal Munnetra Kazhagam (AMMK) leader TTV Dinakaran and dismissed the appeal filed by ED against the 2002 single judge's order which quashed the insolvency notice.
After hearing all sides arguments a division bench of the Madras High Court (MHC) comprising Justice R Subramanian and Justice R Kalaimathi pronounced the verdict.
The judgment dismissed the appeal petition preferred by ED in 2005 against the single judge's order quashing the insolvency notice issued against TTV and allowed the ED to issue fresh notice.
The ED had issued an insolvency notice against TTV on March 1, 2001 as he failed to pay the penalty of Rs.28 crore imposed under the Foreign Exchange Regulation Act (FERA) of 1973.
The notice was issued against TTV under section 9 (2) of the Presidency Towns Insolvency Act of 1909.
However, TTV moved the Madras High Court, challenging the insolvency notice contending misuse and abuse of power by the ED. claiming that the agency could not invoke insolvency law.
In September 2002, the single judge had set aside the insolvency notice issued against TTV after holding that the notice had been issued with a motive to humiliate the applicant.
Challenging this order the ED filed an appeal before the MHC to set aside the single-judge order.
