R. C. Lahoti, C. J. I- - (1.) This is an appeal under Section 10 of the Special Courts (Trial of Offences Relating to Transactions in Securities) Act, 1992 (hereinafter the Act, for short), feeling aggrieved by an order dated 28-7-1998 whereby rejecting an objection petition preferred by the appellant, the Special Court has directed the appellant to hand over possession of all the 56 cars to the custodian within one week from the date of the order.
(2.) The Industrial Finance Corporation of India (hereinafter IFCI, for short) is a Corporation constituted under the Industrial Finance Corporation of India Act, 1948 and carries on the business of financing moneys to various borrowers. Vide agreement dated 4-12-1990, the appellant entered into a Lease Finance Agreement with M/s. Fairgrowth Financial Services Limited (hereinafter Fairgrowth, for short), the respondent No. 3. Pursuant to the letter of offer dated 26-7-1990 under this lease finance agreement, the appellant had taken lease finance of total 57 cars out of which one car was foreclosed in or about January, 1992, leaving 56 cars under lease finance with the appellant.
(3.) The case of the appellant as regards these 56 cars and the relationship of the appellant and respondent No.3 in so far as these cars are concerned is stated as follows. The Appellant Company deposited total security amount on the 56 cars of Rs. 20,97,447.25 paise. The total rental payable by the Appellant Company for 5-year period amounted to Rs. 85,35,379/-. The total purchase price of 56 cars is Rs. 84,80,664/-. As per the terms of the lease finance agreement mutually agreed into by the parties, the Appellant Company was required to pay 25% of the purchase price of the cars as security deposit carrying interest @ 5% per annum compounded half yearly, a lease management fee of 1% and lease rental of Rs. 15/- per thousand Rupees per month of the cash price of the assets which was later revised to Rs. 16/- per thousand Rupees per month by a subsequent letter.;