950813

Paint maker

files suit

against BEL

RECORDER REPORT

ISLAMABAD: A paint manufacturing factory, Witco Pakistan Ltd, has filed a suit against Bankers Equity claiming damages of Rs 50 million.

According to a press release, Witco, established in 1989 at Kahuta industrial area with BEL financing, was declared sick as its mark-up liabilities were reflecting a figure of Rs 4.25 million in March last year.

The incumbent management took over the charge of the factory in May 1994 on the persuasion of the BEL itself. A memorandum of agreement was executed in January this year by the BEL, according to which it was committed to providing working capital to newly-revived unit.

After completion of all the legal formalities, the factory management requested the BEL to release the committed working capital. Bankers Equity admitted the request by issuing legal clearance.

However, later on the BEL refused to disburse the working capital on one pretext or the other, causing financial loss to the company and damaging the business reputation of the company.

The management has filed a suit in the civil courts of Islamabad claiming damages of Rs 50 million against the BEL.