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Annual Report 2011-12
33. Contingent Liabilities
I. HT Media Limited
a) During the year ended March 31, 2005, HT Media
Limited acquired the printing undertaking at New
Delhi from its holding company namely The Hindustan
Times Limited (HTL). The writ petition filed by the ex
–workmen of HTL challenging the transfer of business
was quashed by the Hon’ble Delhi High Court on
May 9, 2006. Thereafter, the ex-workmen of HTL
raised the industrial dispute before Delhi Government,
who referred the dispute to Industrial Tribunal-I,
Karkardooma Courts, New Delhi (Tribunal). During
the course of the proceedings before Tribunal, the
ex-workmen moved application for interim relief. The
Tribunal vide its order dated March 8, 2007, granted
interim relief to the ex-workmen of HTL to the extent
of 50% of last drawn wages from the date of such order
till the disposal of the matter.
However, HTL challenged the said order before
Hon’ble Delhi High Court in a writ petition, wherein
the Hon’ble Court modified the order of the Tribunal
to the extent that the amount equivalent to 50% so
received by ex-workmen will be set off against their
retrenchment compensation (not encashed by the
above ex-workmen till date), in the event of HTL
succeeding in the writ petition. The Hon’ble Court
further clarified that payment will be made only from
date of the High Court order (i.e. March 23, 2007) till
the disposal of writ petition and it further stayed the
order and proceedings pending before the Tribunal.
The said writ stands disposed of by Delhi High Court
vide order dated 16.01.2009 by holding that it was
agreed between the parties to make the payment to
ex-workmen till the amount of their retrenchment
compensation is exhausted. The stay on the proceedings
II. Hindustan Media Ventures Limited
a) Claims against company not acknowledged as debts
132
before the Industrial Tribunal was also vacated by the
Hon’ble Delhi High Court and accordingly proceedings
before the Industrial Tribunal has re-started.
The matter after final arguments stands disposed
by the Industrial Tribunal. The Tribunal has granted
reinstatement to all the workers with continuity of
services w.e.f. 03.10.2004 in The Hindustan Times
Limited subject to workers refunding the retrenchment
compensation received by them. No relief has been
granted against the Company by the Tribunal.
In the meanwhile the workmen in question in the
said writ petition has filed contempt petition against
Hindustan Times Limited and its Directors and same
stands dismissed by Hon’ble Delhi High Court on 16th
March 2012.
b) Guarantee issued by the HT Media Ltd. to Bank against
line of credit sanctioned to HT Burda Media Limited, a
subsidiary, `3,500 lacs (Previous year `3,500 lacs)
c) Guarantee issued by HT Media’s bankers on behalf of
HT Burda Media Limited, a subsidiary, to third parties
`18.00 lacs (Previous year `51.01 lacs)
d) Income tax department has raised a demand of `2.36
lacs (Previous year `2.36 lacs) for the Assessment Year
2004-05 in respect of penalty levied in the assessment
proceedings by Assessing Officer. The Company has
filed an appeal against the order of the Assessing
Officer to Commissioner of Income Tax (Appeals). The
Commissioner of Income Tax (Appeals) has upheld
the levy of penalty. The Company has filed an appeal
against the order of the Commissioner of Income
Tax (Appeals) to Income Tax Appellate Tribunal.
The Company has based on legal advice obtained is
confident of winning the above case and is of view that
no provision is required.
Particulars As at
31 March, 2012
a) The Company has filed a petition before the Hon’ble Patna High Court against an
initial claim for additional contribution of `73.37 lacs made by Employees State
Insurance Corporation (ESIC) relating to the years 1989-90 to 1999-00. The
Company has furnished a bank guarantee amounting to `12.50 lacs to ESIC and the
Hon’ble High Court has stayed the matter. There is no further progress in the matter
during last one year.
b) The Company has filed a petition before the Hon’ble Patna High Court against the
demand of `10.07 lacs (including interest) for short payment of ESI dues pertaining
to the years from 2001 to 2005. The Hon’ble Patna High Court has stayed the
matter. There is no further progress in the matter during last one year.
(` in lacs)
As at
31 March, 2011
73.37 73.37
10.07 10.07
(b) Bank guarantees issued by Company’s bankers on behalf of a fellow subsidiary Nil (Previous year `28.03 lacs)