FEDERAL BANK LIMITED Vs. MILTON PLASTICS LTD

JUDGEMENT

(1.) THIS Application is filed against the defendant for recovery of a sum of Rs. 2,86,79,344/- together with future interest @ 19% p.a with quarterly rests from the date of application till the date of realisation and for the cost of the suit. The applicant Bank also prayed for sale of the assets of the company to recover cost of the proceedings and for other reliefs in order to render justice.

(2.) Brief facts raising to this OA are that the applicant is a Company incorporated under the Companies Act, 1956 having its registered office at Alwaye, Kerala State, having one of its Funds and Investment Branches at Chennai in Tamil Nadu State represented herein by the Senior Manager and Principal Officer Shri. R. Sundara Rajan.

(3.) THE debenture certificates bearing Nos. 1 to 1,00,000 for Rs. 1 crore (Exh. A2) and debenture certificates bearing Nos. 1,00,001 to 2,00,000 for Rs. 1 crore (Exh. A3) were issued by the defendant company on 3.3.1998. As per the terms, the tenure of the debentures were 17 months and the debenture certificate of face value of Rs. 1 crore each will be redeemed at par on 13.4.1999 and 24.4.1999 respectively.