In a notable development, the Bombay High Court on Friday granted bail to Ajay Kerkar, a director at the beleaguered travel company Cox & Kings Ltd (CKL), in a case concerning an alleged loan default of ₹20 crore. The court posited that the case was more of a civil nature than a criminal offence and highlighted the need for thorough due diligence by the complainant before extending the loan.
The legal tangle started with a complaint by Yazdeen Jummy Mistry, head of corporate finance at M/s Kurlon Enterprises, who alleged that CKL had failed to repay an inter-corporate loan issued in two instalments of ₹10 crore each during March and August 2019. Despite having repaid the initial five instalments, CKL defaulted on the remaining dues.
The complaint detailed that the loan was fortified with a guarantee deed from some of CKL’s directors and underscored CKL’s presentation of a robust balance sheet and an A1+ rating from a credit agency as assurance of its financial health at the time of the loan’s sanction.
Ajay Kerkar was apprehended on January 10, 2024, under multiple financial offence charges. He has been in custody since 2020 and faces charges in over eight different cases involving various banks and financial entities. Despite these allegations, Kerkar has secured bail in most of these cases, including some from the Supreme Court.
Justice Milind Jadhav, presiding over the hearing, considered Kerkar’s prolonged detention and previous court decisions that had granted bail to other CKL executives, including the company’s Chief Finance Officer and Special Auditor. “Considering the applicant’s continued incarceration since 2020, the Supreme Court’s bail order dated August 29, 2024, and the precedent set by this court in granting bail to CKL’s Chief Finance Officer and Special Auditor on February 25, 2025, I am of the opinion that the applicant has made out a case for bail,” Justice Jadhav remarked.
