- (1.) Companies Eveready Industries India Limited and Mcleod Russel India Limited, the flag-bearers of the Williamson Magor stable in its halcyon days, question the propriety of an ad interim order and complain that, to the extent the injunction affects the appellants, the impugned order must be seen to be legally perverse as it is not founded either on facts or any legal basis.
(2.) Plaintiff IL and FS Financial Services Limited has a substantial claim in excess of Rs. 120 crore against the several other defendants in the suit. According to the plaintiff, an initial loan or credit facility was granted to one or more entities in the Williamson Magor Group and, upon such facilities not being repaid by or about March 2018, a fresh agreement was entered into for a further Rs. 100 crore to be infused in the form of the plaintiff subscribing to compulsorily convertible preference shares in the third defendant, McNally Bharat Engineering Company Limited.
(3.) Several documents were executed on or about March 27, 2018, including a share subscription agreement and an agreement that defined the rights of the creditor and the obligations of the parties who could be called upon by the creditor to repay the loan. These agreements covered events of default which indicated the circumstances in which the facility could be recalled by the creditor even though the period for which the facility had been accorded had not expired.;