A company vehicle sits at the centre of an unusual dispute at Delhi-based movie distributor Interworld Digital Ltd, which says it has been unable to clear the final instalment of a bank loan because its former managing director has not returned the vehicle.
The dispute surfaced in the company's latest stock exchange filing, where it linked the continuing default to a long-running disagreement with its former managing director.
Interworld Digital reported a default of Rs 6 lakh on bank borrowings as of June 30, while its total financial indebtedness stood at Rs 2.21 crore, according to the filing. The company said the outstanding amount relates to the final instalment of financing taken to purchase a vehicle from Kotak Mahindra Prime Ltd.
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According to Interworld Digital, the vehicle remains with former managing director Man Mohan Gupta. It further alleged that Gupta "fraudulently shifted the entire business of the company including its Intellectual Property to the other entities formed by him". These are allegations made by the company in its exchange filing.
"The management of the company has requested him several times either to return the vehicle to the company or to clear the outstanding debts of Kotak Mahindra Prime Limited so that the loans obtained from it could be settled. However, the past Managing Director, Mr. Man Mohan Gupta is not cooperating with the company till date," the company said.
The filing showed total borrowings of Rs 2.21 crore, including Rs 2.15 crore in unsecured short-term loans, Rs 1 lakh outstanding on the vehicle financing and Rs 5 lakh in unpaid interest and other charges.
The company did not indicate when the dispute could be resolved or when the outstanding amount would be settled.
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