CHENNAI: The Madras High Court today adjourned to the third week of June an appeal by the ED to set aside the order of a single Judge, refusing to adjudicate AIADMK Deputy General Secretary, TTV Dinakaran under insolvency laws.
The Enforcement Directorate had issued insolvency notice to Dinakaran for recovering Rs 28 crore penalty from him for alleged Foreign Exchange Regulation Act violations.
Dinakaran had filed a petition in the high court against it and a single Judge had allowed his petition. The court had stated that the penalty imposed on him could not be a "debt" within the meaning of the Insolvency Act and Dinakaran cannot be characterised as a "debtor" within the meaning of that Act.
The ED had filed an appeal against the order and it came up for hearing today before a Bench, comprising acting Chief Justice Huluvadi G Ramesh and Justice M Sunder.
Counsel for Dinakaran submitted that an appeal would be filed before the Supreme Court against a latest order of the Madras High Court confirming the penalty imposed by ED.
On January 6, the First Bench headed by the then Chief Justice Sanjay Kishan Kaul had confirmed the penalty of Rs 28 crore levied by ED on Dinakaran.
The counsel hence sought adjournment of hearing of the appeal and the matter was posted to the third week of June.