CHENNAI:  The Madras High Court on Wednesday granted 12 days to Vasan Health Care Ltd (VHCL) to pay Rs 4.91 cr it owed to two creditors, and on its commitment to pay the amount, it withheld the operation of the provisional winding up order it had passed.

Justice Pushpa Satyanarayana had passed a provisional winding up order of Vasan Health Care Ltd on August 10 when a petition filed by two Delhi-based creditors Ganesh Lal Jain and Suresh Kumar Jain, came up for hearing. No one from Vasan had appeared in court to defend the company. The judge had also directed that the official liquidator under the law be the provisional liquidator and the winding up order be publicised in local newspapers.

The Vasan Health Care Ltd  then moved the high court for the cancellation of the winding up order and pending that, stay of its operation. During the hearing on Wednesday, the court withheld the winding up order till October 5 to enable Vasan Health Care Ltd to settle the creditors, thus giving the company some breathing space.

Besides dues to the creditors, Vasan Health Care Ltd  has not been regular in making statutory tax payments deducted at source and also other dues. Trade circles wonder as to what happened to the company that claimed foreign investment poured into it besides borrowing hundreds of crores of rupees — and what happened to those funds.