Banerjee, J. - (1.)M/s. Skipper Constructions (P) Ltd. was incorporated on 14th February, 1986 to undertake development and construction of commercial and residential complexes. The activity is generally financed from advances/deposits from prospective buyers. Skipper has had five other associates : Skipper Tower Private Limited; Skipper Builders Private Limited, Skipper Sales Private Limited; Skipper Properties Private Limited, and Anand Construction (Delhi) Private Limited.
(2.)The contextual facts depict that in an auction held on 8th October, 1980 in respect of the plot of land in Jhankewalan, the bid of Rs. 982 lacs offered by Skipper Constructions was accepted by the Delhi Development Authority (DDA herein). The Company had deposited Rs. 245.75 lacs on the date of auction and the balance amount of Rs. 736.25 lacs was required to be deposited within 90 days. The records depict that the company was able to raise a sum of Rs. 645.66 lacs from the flat owners in stages, out of which Rs. 583.25 lacs were paid to the DDA towards the cost of the land. The DDA, however, had agreed to recover the balance amount of Rs. 398.75 lacs together with interest at the rate of 18% per annum amounting to Rs. 392.61 lacs accumulated up to the end of year 1985 in five equal instalments in 21/2 years and delivered possession of the land against bank guarantee for the like amount. The Company accordingly approached the New Bank of India, Tolstoy Marg Branch in January 1986 with the request for issuance of bank guarantee of Rs. 7.90 crores to be executed in favour of the DDA. The said guarantee was required to be given as the cost of land was not paid in full by the Company to the DDA. The Company proposed to construct the flats on 8 portion of the Jhandewalan Tower, New Delhi.
(3.)The facts further depict that on receipt of the letter dated 23rd January, 1986 from the Skipper Company, the Tolstoy Marg Branch of New Bank of India recommended the facility of having the bank guarantee sanctioned by charging 1% commission per annum on diminishing balance of half yearly rests together with a margin of 15% in the form of FDR main security by equitable mortgage of property No. 3, Aurangzeb Road, New Delhi and the lien over unsold space in Jhandewalan Tower amounting to Rs. 676.09 lacs along with collateral security of counter guarantee of the company and personal guarantee of the Directors Tejwant Singh and Harpreet Singh having net means of Rs. 2,78,000/- and Rs. 2,51,706/- respectively.