TATA CAPITAL FINANCIAL SERVICES LTD. Vs. SEA ROCK INVESTMENTS LIMITED

JUDGEMENT

(1.) TATA Capital Financial Services Limited is the petitioner in all these petitions. The three different petitions are filed against the three different respondent companies. Since the petitioner contends that the respondents in all these petitions have guaranteed the repayment of loan obtained by M/s. Manipal Motors Private Limited (hereinafter referred as 'Borrower' for short) from the petitioner, the contentions being common to all these petitions, they were heard together at the stage of admission and is being considered by this common order.

(2.) FOR the sake of convenience, Co. P. No. 159/2009 is taken as the lead case for noticing the rival contentions. The case of the 5 petitioner is that the Borrower obtained revolving finance facility from the petitioner. Sri. Balakrishna Rao, the director of the Borrower company stood as personal guarantor while the respondents herein namely CCI Ltd., Chitrakala Investment, Trade and Business Finance Ltd., and Sea Rock Ltd. offered corporate guarantee (hereinafter referred jointly as 'Corporate Guarantors'). The channel finance agreement is said to be dated 12.09.2007 and a power of attorney dated, 12.09.2007 to sell, assign and transfer the goods specified was also executed. The deed of guarantees are stated to be dated 03.11.2008 and 20.10.2008. The limit of revolving loan facility which was initially to the extent of Rs. 2,50,00,000/ - was enhanced to Rs. 9,00,00,000/ - and as such another agreement dated 17.07.2008 was executed. In addition to the Corporate guarantee dated 03.11.2008, a deed of pledge of even date and power of attorney was executed. The additional documents executed pursuant to sanctioned letter dated 14.10.2008 is also referred. Thereafter by sanction letter dated 01.08.2008, granted a channel finance facility of Rs. 15,00,00,000/ - to enable the Borrower company to purchase vehicles. Hence another channel finance facility agreement dated 01.08.2008 was executed.

(3.) IT is further contended that in that view, as on 20.07.2009 the amount due and payable by the Borrower company was the sum of Rs. 4,30,41,501/ - along with interest. The petitioner accordingly is stated to have got issued the legal notice dated 10.08.2009 and 18.08.2009 to the respective respondents as per the statutory compliance under the Companies Act. No response was received to the notice. It is averred that the respondents are unable to pay their debts and being the Corporate guarantors, they are liable to be wound up. Hence these petitions are filed.