Zen Supreme resurfaces, declares itself insolvent

CHENNAI, INDIA: Chennai channel partners and distributors are extremely unhappy these days and the cause is Zen Supreme.

As reported in The DQ Week in May 2008, Zen had absconded from Chennai, without paying them after getting material. Considered the biggest scam to ever happen in the Chennai market, Zen Supreme had allegedly bought material from 44 people in the channel industry.

The list included 18 distributors (both national and regional) and 26 partners. It was said that Zen Supreme owed around Rs 2.5 crore to these people. As of result of his absconding the affected partners had filed a case against the proprietor Kalyana Sundaran (prime accused) his wife Hemalatha and his brother Balasubramanium and the case was transferred to Crime Branch Department, Chennai.

The twist in the tale happened recently, as the police were scouting for the accused, the 44 people who had lost money have now been served a legal notice by the Madras High Court stating that all the three accused Kalyana Sundaram (Insolvency Petition No. 75), Hemalatha (IP No. 77) and Balasubramanium (IP No. 76) have been adjudicated insolvent on their petition by an order of the High Court, Madras dated July 10, 2008.

The petition also stated that consequent upon the order of adjudication all the insolvents assets wherever they may be situated vest in the Official Assignee, High Court Madras.

The notice had asked the creditors to come for a meeting on Oct 21 to discuss the assets/properties of the insolvent, to file their claims before the Official Assignee of the High Court, Madras and also were asked to bring to the notice of the High Court if the insolvents have suppressed any property with relevant documents.

The partners who attended the meeting with the Official Assignee of High Court, Madras said that they have been asked to file their claims before the Official Assignee with relevant documents and were asked to bring to the notice of the High Court if the insolvents had suppressed any assets so that it would be divided among the creditors.

One of the partner on the condition of anonymity informed The DQ Week that the Official Assignee of High Court informed the partners that in the petition filed by insolvent it was mentioned by him that he has applied for insolvency claiming that one of the major dealer in Ritchie Street with whom he had done business for sometime owes the insolvent Rs 1.45 crore for the business transactions that took place between the two and that is the reason why Zen Supreme was not able to pay his creditors.

“The insolvent has filed his petition to the High court that since the leading partner in Ritchie Street with whom he had done business for sometime hasn’t paid him Rs 1.45 crore for their business transactions, he had been forced to go for insolvency. The dealers will stay united till the end and will fight until the accused is punished in the hands of law,” the partner informed.

Since the accused has gone for insolvency, the case has turned into a civil case from criminal. However, dealers claim that the police can still arrest the accused in cheating case.

The High Court has scheduled the next hearing for Dec 29 . “In the next hearing we might come to know who the leading partner on Ritchie Street is, who owes money to Zen Supreme and exactly what happened, as the court has also asked for an explanation from the defaulter pointed out by the insolvent,” a dealer informed.