Decided on April 01,2015

Purulia And Kharagpur Transmission Company Limited And Ors. Appellant
Bank of India and Ors. Respondents


- (1.) THE first petitioner herein, Purulia and Kharagpur Transmission Company Limited, has been granted transmission licence under Section 14 of the Electricity Act, 2003 (hereinafter referred to as "the Act") to transmit electricity as a transmission licensee and for that purpose to undertake the business of establishing the transmission system for "Eastern Region System Strengthening Scheme -VII" (hereinafter referred to as "Transmission System")' on 'Build, Own, Operate and Maintain' (BOOM) basis, the details of which are specified in the schedule attached to the licence issued vide order dated 31.5.2014.
(2.) PURULIA and Kharagpur Transmission Company Limited and SBICAP Trustee Company Limited have filed a combined petition for creation of security in favour of SBICAP Trustees Company Limited as Security Trustee pursuant to Security Trustee Agreement by way of hypothecation on project assets for benefit of the lenders/security trustee to the project. The petitioners have made the following prayers: "(a) Approve the creation of security in favour of Security Trustee pursuant to Security Trustee Agreement, by way of hypothecation on Project Assets through execution of unattested deed of hypothecation for the project; (c) Pass such other relief as Hon'ble Commission deems fit and appropriate under the circumstances of the case and in the interest of justice;"
(3.) ACCORDING to the first petitioner, request has been made for long -term debt through banks/financial institutions (Bank of India) and Bank of India (hereinafter referred to as 'lenders') has agreed to make available assistance amounting to Rs. 380,00,00,000 for the purpose of part financing the construction, development and implementation of the project and on the terms and conditions set out in the 'Facility Agreement', 'Security Trustee Agreement', 'Trust and Retention Account Agreement', 'Sponsor Support Agreement', 'Non Disposal Agreement' and 'Promoter Support Agreement' (hereinafter referred to as 'Financing Agreements'). For this purpose, the first petitioner and lender have appointed the second petitioner viz, SBICAP Trustee Company Limited as Security Trustee (hereinafter referred to as 'Security Trustee') who has agreed to act as Security Trustee for the lender and has entered into Security Trustee Agreement with the petitioners and lenders on 21.10.2014. The first petitioner has submitted that the proposed unattested deed of hypothecation has been settled and initialed between the first petitioner and Security Trustee. The first petitioner has submitted that it has proposed to agree under unattested deed of hypothecation that it shall be lawful for the Security Trustee or lender to enter into and take possession of hypothecated premises along with all intangibles and any future assets under the project comprised in unattested deed of hypothecation and thenceforth, the first petitioner shall take no action inconsistent with or prejudicial to the right of Security Trustee on behalf of the lender quietly to possess, use and enjoy the same and to receive the income, profits and benefits thereon without interruption or hindrance by it or by any person or persons whosoever.;

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