Jayaprada pays Rs.2,520,000 to come out of insolvency

March 8th, 2008 - 2:28 pm ICT by admin  

Chennai, March 8 (IANS) Samjwadi Party MP Jayaprada has coughed up a whopping Rs.2,520,000 to settle her dues in Chennai in her effort to get herself declared “solvent”. The amount was in total settlement of two dues, one to a private financier and the other to the Chennai Corporation, which was deposited by the party to the Corporation’s counsel before the Madras high court.

There are two cases before a lower court and the high court against the actor-turned politician, who was not present in court.

Jayaprada and her brothers, Rajbabu and Sriram Kumar, are joint owners of two cinema halls in Chennai, Raj theatre and Jayaprada theatre, on Mount Road.

The Chennai Corporation in February accused the family, including Jayaprada, of non-payment of tax to the city corporation, to the tune of some Rs.2 million.

Two years ago, Sept 18, 2006, Jayaprada and her brothers were declared ‘insolvent’ by the Madras high court on the complaint of a creditor.

The MP’s legal woes increased with the Corporation attempting to seize the properties to recover dues and the high court telling the Corporation, it would have to recover its taxes from the court as the property was now administered by it.

The ‘insolvent’ status also put Jayaprada’s membership in parliament in jeopardy as an insolvent person cannot be an MP according to Art 102 (1)(c) of the Constitution.

After the full amount was settled Friday, Justice V. Ramasubramanaian allowed further proceedings to let Jayaprada appeal to set aside the earlier order declaring the MP insolvent.

He said that he was treating the matter as a “compromise and condoned the delay of 503 days in her filing the application” to be declared solvent once again.

Corporation counsel N. Subramanian said he would not press the matter before the liquidator and Jayaprada’s appeal to get herself declared solvent can go through.

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