- (1.) The Court : It is a tragedy that the claim in this case failed, made more tragic since the judgment in this case was reserved on April 22, 2014 and it was finally pronounced on March 13, 2015. It is quite impossible for there to be any degree of authentic recollection of a matter or of the arguments made in course thereof some eleven months after the conclusion of the hearing.
(2.) The facts are not in dispute. Defendant Small Industries Development Bank of India (SIDBI) issued two lots of bonds, one carrying interest at the rate of 13.5% per annum and the other carrying interest at the rate of 12.5% per annum. Specific numbers of bonds of either denomination were obtained by one CRB Capital Markets Limited. As is well known, such CRB Capital Markets Limited and the principal person in control thereof were involved in divers market irregularities and the Reserve Bank of India, in exercise of its special authority, was constrained to seek winding-up of CRB Capital Markets Limited before the Delhi High Court within whose jurisdiction that company was registered. However, prior to the winding-up proceedings against CRB Capital Markets Limited being launched, one Shankarlal Saraf had purchased the relevant bonds from CRB Capital Markets Limited and such Saraf, in turn, sold the bonds to plaintiff Sibco Investment Private Limited. The initial transfer of the bonds was registered by defendant SIDBI in March, 1997 in favour of the said Saraf. The subsequent transfer of the bonds in favour of the plaintiff was also duly recorded by the defendant.
(3.) The plaintiff purchased 15 bonds of face value of Rs.10 lakh each that yielded interest at the rate of 13.5% per annum from the said Saraf. Simultaneously, the plaintiff purchased another 26 bonds of face value of Rs.10 lakh each yielding interest at the rate of 12.5% per annum. Both sets of the bonds would pay interest on the 21st days of June and December each year till maturity. The 13.5% bonds matured on December 21, 2003 and the 12.5% bonds matured on December 21, 2004.;