INDUSTRIAL DEVELOPMENT BANK OF INDIA Vs. SILICON VALLEY TECHNOLOGIES I LTD
DEBTS RECOVERY APPELLATE TRIBUNAL
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(1.) THIS Original Application initiated by the applicant Industrial Development Bank of India (IDBI) against the defendant Nos. 1 to 8 under Section 19 of the RDDBFI Act for recovery of Rs. 15,22,07,838/-together with interest, costs and other usual reliefs.
(2.) The defendant No. 1 is a company incorporated under the Companies Act, 1956. The defendant Nos. 2 and 3 guaranteed the repayment of the Bank's dues. Defendant Nos. 4 and 5 are the other companies incorporated under the same Act. The defendant Nos. 6 to 8 are the holders of pari passu charge with the applicant Bank in respect of their term loans granted to the defendant No. 1 over the immovable and movable properties of the defendant No. 1.
Initially the defendant No. 1 requested the applicant and defendant Nos. 6 and 7 vide his letter dated 6th July, 1989 for financial assistance and the applicant Bank sanctioned first term loan of Rs. 414 lakh together with interest @14% per annum under project finance participation scheme in participation with the defendant Nos. 6 and 7 on the terms and conditions of the applicant thereby the various loan agreement documents on 14 March, 1990 in favour of the applicant. The defendant No. 1 agreed to create first charge by way of equitable mortgage in favour of applicant on all the immovable properties of defendant No. 1 situated at Schedule I of the Original Application. The defendant No. 1 also agreed to create security in favour of applicant by first charge by way of hypothecation on all the movable properties situated at Schedule II and charge of applicant on the property described at Schedule III in favour of the applicant. For further security on the first term loan the defendant No. 1 executed a deed of hypothecation thereby creating a first charge in favour of the applicant.
(3.) THE defendant No. 1 further requested the applicant and the defendant Nos. 6 and 7 for an additional financial assistance in the form of Rupee term loan. THE applicant sanctioned Rupee term loan of Rs. 75 lacs together with interest @15% per annum under the PFPS in participation with the defendant Nos. 6 and 7 on the terms and conditions agreed between the applicant, principal borrower and defendant Nos. 6 and 7. In pursuance of the second term loan the defendant No. 1 executed common loan agreement on 3rd May, 1991 in favour of the applicant. THE director of defendant No. 1 consented to the applicant for continuing the mortgage property of schedule I with an intent to create first charge.;
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