CONTINENTAL CONSTRUCTION LIMITED Vs. EXPORT IMPORT BANK OF INDIA

JUDGEMENT

(1.) THIS Misc Appeal is filed by the appellant/original defendant No. 1 M/s. Continental Construction Limited, being aggrieved by the order dated 27.12.2001, passed by the Incharge Presiding Officer, DRT I, Mumbai on Exhibit 9 in OA. No. 1241/2000.

(2.) To understand controversy between the parties, few facts are required to be stated, which are as follows :

(3.) BECAUSE of the outbreak of the Gulf war the appellants failed to recover its dues from its principals, being the public authorities and/or Government bodies of Iraq. The amount due from the appellants as on 30.12.1992 in respect of the said overdraft facility was quantified to 110.695 million US Dollars, including accrued interest remaining unpaid. The SBI's foreign office demanded liquidation of the aforesaid overdraft facility. The appellant thereupon approached the SBI and Exim Bank for assistance and at the request of the appellants and with the approval to liquidate the entire outstanding under the aforesaid US Dollars overdraft facility by remitting the equivalent dollar funds from India in 3 tranches, the first 2 of such tranches being of the sum of 35 million US Dollars and third tranche to be of such amount as was necessary to liquidate the then outstanding balance remaining unpaid.