The Supreme Court has stayed the winding up proceedings initiated against cash-strapped retail chain Subhiksha Trading Services Ltd till November 23.
It also stayed the proceedings in connection with the amalgamation of the retailer with its subsidiary Blue Green Construction and
Investments Ltd (BGCIL).
The retailer was forced to shut its network of supermarkets across India after the company faced acute financial crunch.
A Bench, headed by Justice S H Kapadia, stayed the proceedings before the Madras High Court till November 23, the date on which it is scheduled to come up for hearing.
"Pending further orders, proceedings before the High Court in connection with the winding up and amalgamation of Subhiksha Trading Services with Blue Green Construction and Investments Ltd are hereby stayed," the Bench ordered.
Challenging the High Court verdict that dismissed Subhiksha's scheme of arrangement proposal, Cash and Carry Wholesale Traders Pvt Ltd (C&C), a subsidiary of the firm, in its plea said that no useful purpose would be served by the winding up of the company without exploring the possibility of settlement scheme with the creditors.
The C&C, which is a listed company, said that the High Court's approach in dismissing its plea was "erroneous" as it was BGCIL and the sponsor which would infuse the required Rs 250 crore in the ailing company and the same could be done only after the merger scheme was approved.