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The Bombay High Court after observing that the investors who have put in their life savings in a company cannot be made to wait indefinitely to get their deposits, has refused to grant extension to Elder Pharmaceuticals Ltd to repay the money to the tune of Rs 155 crore to various investors.
Elder Pharmaceutical, on the grounds that it had opened talks with the financiers to infuse fresh equity of Rs 170 crore into the ailing company, required further time.
The court said, “Many of the depositors are small—time investors and individuals who have invested their life’s savings in the company to fund their retirements as children’s education. These investors cannot be asked to wait indefinitely till the company executes an agreement with a financier and the financier, in turn, brings in the finance.”
