w w w . L a w y e r S e r v i c e s . i n



Dwarkadhis Projects Pvt. Ltd. v/s Punjab National Bank & Another


Company & Directors' Information:- BANK OF PUNJAB LIMITED [Amalgamated] CIN = L65110CH1994PLC014639

Company & Directors' Information:- C AND C PROJECTS LIMITED [Active] CIN = U74999HR2007PLC036644

Company & Directors' Information:- Y K M PROJECTS PRIVATE LIMITED [Active] CIN = U40109TG2008PTC057263

Company & Directors' Information:- T G R PROJECTS INDIA PRIVATE LIMITED [Active] CIN = U45200KA2012PTC062702

Company & Directors' Information:- S G PROJECTS LIMITED [Active] CIN = U65999WB1990PLC049684

Company & Directors' Information:- B C C PROJECTS PVT LTD [Active] CIN = U74899DL2001PTC112102

Company & Directors' Information:- J K S PROJECTS LIMITED [Active] CIN = U45400WB2011PLC157565

Company & Directors' Information:- D M P PROJECTS PVT LTD [Active] CIN = U27109WB2006PTC107513

Company & Directors' Information:- T & T PROJECTS LIMITED [Active] CIN = U45201AS2008PLC008641

Company & Directors' Information:- W AND W PROJECTS PRIVATE LIMITED [Active] CIN = U65910DL1989PTC036754

Company & Directors' Information:- E M C PROJECTS PVT LTD [Active] CIN = U29248WB1964PTC026261

Company & Directors' Information:- H AND V PROJECTS PRIVATE LIMITED [Active] CIN = U72400DL2011PTC220047

Company & Directors' Information:- M A PROJECTS PRIVATE LIMITED [Active] CIN = U70101DL2005PTC135093

Company & Directors' Information:- DWARKADHIS PROJECTS PRIVATE LIMITED [Active] CIN = U45201DL2005PTC142439

Company & Directors' Information:- S. V. S. PROJECTS PRIVATE LIMITED [Active] CIN = U70100AP1998PTC029024

Company & Directors' Information:- M V PROJECTS (INDIA) PRIVATE LIMITED [Active] CIN = U45202KA2008PTC045272

Company & Directors' Information:- S V S PROJECTS INDIA PRIVATE LIMITED [Active] CIN = U45200AP2015PTC096787

Company & Directors' Information:- A T E PROJECTS PRIVATE LIMITED [Active] CIN = U74999DL1999PTC102246

Company & Directors' Information:- U W T PROJECTS LIMITED [Active] CIN = U45200AP2004PLC043198

Company & Directors' Information:- J J PROJECTS PVT LTD [Active] CIN = U24231WB1986PTC040246

Company & Directors' Information:- Z H PROJECTS PRIVATE LIMITED [Strike Off] CIN = U45400WB2012PTC184307

Company & Directors' Information:- K & J PROJECTS PRIVATE LIMITED [Active] CIN = U45203MH2004PTC150165

Company & Directors' Information:- T & I PROJECTS LTD [Active] CIN = L29130WB1984PLC038232

Company & Directors' Information:- B 2 R PROJECTS PRIVATE LIMITED [Active] CIN = U45400WB2013PTC189971

Company & Directors' Information:- C M PROJECTS PRIVATE LIMITED [Active] CIN = U45201DL2004PTC130580

Company & Directors' Information:- N G PROJECTS LIMITED [Active] CIN = U45201GJ2003PLC042152

Company & Directors' Information:- E AND C PROJECTS PRIVATE LIMITED [Active] CIN = U29150DL2002PTC115297

Company & Directors' Information:- B. D. R. PROJECTS PRIVATE LIMITED [Active] CIN = U45202TG1998PTC028780

Company & Directors' Information:- J T L PROJECTS PRIVATE LIMITED [Active] CIN = U70101KL2006PTC019439

Company & Directors' Information:- V AND S PROJECTS PRIVATE LIMITED [Active] CIN = U70109DL1996PTC079487

Company & Directors' Information:- L S R PROJECTS PRIVATE LIMITED [Strike Off] CIN = U07010KA2005PTC036041

Company & Directors' Information:- V R PROJECTS PRIVATE LIMITED [Strike Off] CIN = U45400AP2007PTC054901

Company & Directors' Information:- D C R PROJECTS PRIVATE LIMITED [Active] CIN = U45209TG2007PTC056307

Company & Directors' Information:- R. R. PROJECTS PVT LTD [Active] CIN = U45200TG1982PTC003711

Company & Directors' Information:- S H PROJECTS PRIVATE LIMITED [Active] CIN = U74996DL2006PTC149971

Company & Directors' Information:- S R PROJECTS INDIA PVT LTD [Active] CIN = U45207WB1981PTC033286

Company & Directors' Information:- L E PROJECTS PRIVATE LIMITED [Active] CIN = U45303WB2005PTC102555

Company & Directors' Information:- M. S. PROJECTS PRIVATE LIMITED [Active] CIN = U45400WB2009PTC131902

Company & Directors' Information:- J V PROJECTS PRIVATE LIMITED [Active] CIN = U74899DL1995PTC069037

Company & Directors' Information:- B N PROJECTS PRIVATE LIMITED [Active] CIN = U45201GJ2009PTC058067

Company & Directors' Information:- J P PROJECTS PRIVATE LIMITED [Active] CIN = U70109WB2011PTC165990

Company & Directors' Information:- R K PROJECTS PRIVATE LIMITED [Active] CIN = U74899DL1990PTC043660

Company & Directors' Information:- A B PROJECTS PRIVATE LIMITED [Active] CIN = U45200MH2004PTC149404

Company & Directors' Information:- A K PROJECTS PRIVATE LIMITED [Strike Off] CIN = U45201TG1996PTC023179

Company & Directors' Information:- S N M PROJECTS PRIVATE LIMITED [Active] CIN = U70102UP2010PTC040243

Company & Directors' Information:- J AND H PROJECTS PRIVATE LIMITED [Active] CIN = U45200GJ2013PTC074010

Company & Directors' Information:- N S PROJECTS PRIVATE LIMITED [Active] CIN = U70101WB2007PTC117882

Company & Directors' Information:- H S PROJECTS PRIVATE LIMITED [Active] CIN = U45208DL2006PTC153706

Company & Directors' Information:- N M PROJECTS PRIVATE LIMITED [Active] CIN = U29219DL2009PTC186728

Company & Directors' Information:- K. V. PROJECTS PRIVATE LIMITED [Active] CIN = U70102WB2012PTC188439

Company & Directors' Information:- K R S PROJECTS PRIVATE LIMITED [Active] CIN = U70102AP2012PTC082232

Company & Directors' Information:- B S C PROJECTS PRIVATE LIMITED [Active] CIN = U45200DL2011PTC227768

Company & Directors' Information:- J K PROJECTS PRIVATE LIMITED [Active] CIN = U45203GJ2001PTC039576

Company & Directors' Information:- F C C PROJECTS PRIVATE LIMITED [Active] CIN = U29248UP1982PTC005786

Company & Directors' Information:- S N PROJECTS LIMITED [Active] CIN = U85110KA1996PLC021040

Company & Directors' Information:- B. D. PROJECTS PRIVATE LIMITED [Amalgamated] CIN = U45400WB2010PTC147620

Company & Directors' Information:- C & I PROJECTS PRIVATE LIMITED [Active] CIN = U29100DL2010PTC209136

Company & Directors' Information:- C & I PROJECTS PRIVATE LIMITED [Active] CIN = U74140DL2010PTC209136

Company & Directors' Information:- C B PROJECTS PRIVATE LIMITED [Active] CIN = U70109WB1997PTC085237

Company & Directors' Information:- G G PROJECTS PRIVATE LIMITED [Active] CIN = U45201DL1998PTC091501

Company & Directors' Information:- V M G PROJECTS (INDIA) PRIVATE LIMITED [Strike Off] CIN = U45400WB2011PTC164117

Company & Directors' Information:- M. L. PROJECTS PRIVATE LIMITED [Active] CIN = U45400WB2010PTC151513

Company & Directors' Information:- R N D PROJECTS PRIVATE LIMITED [Active] CIN = U70102DL1996PTC080051

Company & Directors' Information:- M. K. N. PROJECTS PRIVATE LIMITED [Active] CIN = U70101DL2009PTC196755

Company & Directors' Information:- M B R PROJECTS PRIVATE LIMITED [Strike Off] CIN = U45300KA2009PTC049005

Company & Directors' Information:- G S P PROJECTS PRIVATE LIMITED [Active] CIN = U45201WB1992PTC057116

Company & Directors' Information:- K P S PROJECTS PRIVATE LIMITED [Active] CIN = U70102TG2005PTC046280

Company & Directors' Information:- E AND V PROJECTS PRIVATE LIMITED [Strike Off] CIN = U70102TG2004PTC042622

Company & Directors' Information:- T M R PROJECTS PRIVATE LIMITED [Active] CIN = U45400DL2010ULT211007

Company & Directors' Information:- S C T PROJECTS PRIVATE LIMITED [Strike Off] CIN = U45201DL2008PTC184418

Company & Directors' Information:- P A PROJECTS PRIVATE LIMITED [Active] CIN = U45208WB1997PTC083907

Company & Directors' Information:- N K D PROJECTS PRIVATE LIMITED [Active] CIN = U45400WB2008PTC128819

Company & Directors' Information:- A I PROJECTS PRIVATE LIMITED [Strike Off] CIN = U45203WB2000PTC091229

Company & Directors' Information:- P N PROJECTS PRIVATE LIMITED [Active] CIN = U45202DL2016PTC289494

Company & Directors' Information:- V AND M PROJECTS PRIVATE LIMITED [Active] CIN = U45201DL2005PTC139731

Company & Directors' Information:- K K PROJECTS PVT LTD [Strike Off] CIN = U70200WB1995PTC073058

Company & Directors' Information:- S L PROJECTS PRIVATE LIMITED [Active] CIN = U45400AN2009PTC000109

Company & Directors' Information:- PROJECTS PVT LTD [Strike Off] CIN = U45201WB1951PTC019759

Company & Directors' Information:- V K M PROJECTS PRIVATE LIMITED [Active] CIN = U45400UP2011PTC045725

Company & Directors' Information:- K P PROJECTS PVT LTD [Active] CIN = U70101WB1996PTC077397

Company & Directors' Information:- C R PROJECTS PRIVATE LIMITED [Active] CIN = U45400PB2009PTC032572

Company & Directors' Information:- N D B K PROJECTS (INDIA) PRIVATE LIMITED [Active] CIN = U27100PB2012PTC036987

Company & Directors' Information:- N P R PROJECTS INDIA PRIVATE LIMITED [Strike Off] CIN = U45400TN2012PTC086360

Company & Directors' Information:- G P N PROJECTS PRIVATE LIMITED [Strike Off] CIN = U18101TZ2006PTC012749

Company & Directors' Information:- D H V PROJECTS PRIVATE LIMITED [Strike Off] CIN = U45200TG2005PTC045988

Company & Directors' Information:- V K R PROJECTS PRIVATE LIMITED [Active] CIN = U45200TG2005PTC046370

Company & Directors' Information:- I N C PROJECTS PRIVATE LIMITED [Active] CIN = U70109WB2005PTC101620

Company & Directors' Information:- J. S. PROJECTS PRIVATE LIMITED [Active] CIN = U45400WB2009PTC136510

Company & Directors' Information:- D J PROJECTS PRIVATE LIMITED [Active] CIN = U15201DL2005PTC134979

Company & Directors' Information:- M S C K PROJECTS PRIVATE LIMITED [Converted to LLP] CIN = U70101DL2005PTC135407

Company & Directors' Information:- B R T PROJECTS PRIVATE LIMITED [Strike Off] CIN = U45203TG1996PTC025021

Company & Directors' Information:- T AND M PROJECTS PRIVATE LIMITED [Strike Off] CIN = U45201KA2008PTC045199

Company & Directors' Information:- A C G PROJECTS PRIVATE LIMITED [Active] CIN = U45201UP1999PTC024162

Company & Directors' Information:- C K B PROJECTS INDIA LIMITED [Strike Off] CIN = U70102WB2012PLC188740

Company & Directors' Information:- N E PROJECTS LTD [Strike Off] CIN = U16009AS1999PLC005873

Company & Directors' Information:- D R PROJECTS PRIVATE LIMITED [Active] CIN = U74899DL2001PTC109612

Company & Directors' Information:- I J PROJECTS PRIVATE LIMITED [Strike Off] CIN = U70102KA2009PTC049320

Company & Directors' Information:- G C N PROJECTS PRIVATE LIMITED [Active] CIN = U45200KA2011PTC061371

Company & Directors' Information:- L N PROJECTS PRIVATE LIMITED [Strike Off] CIN = U45200TG2004PTC043064

Company & Directors' Information:- H B PROJECTS PVT LTD [Amalgamated] CIN = U45201WB1993PTC058846

Company & Directors' Information:- I. T. G PROJECTS PRIVATE LIMITED [Active] CIN = U74899DL1994PTC063342

Company & Directors' Information:- P. S. PROJECTS PRIVATE LIMITED [Converted to LLP and Dissolved] CIN = U70109WB2011PTC170655

Company & Directors' Information:- A R N PROJECTS PRIVATE LIMITED [Strike Off] CIN = U45202MH2010PTC199122

Company & Directors' Information:- H. K. PROJECTS PRIVATE LIMITED [Strike Off] CIN = U45400WB2007PTC116467

Company & Directors' Information:- D M C PROJECTS PRIVATE LIMITED [Strike Off] CIN = U74140WB2005PTC105972

Company & Directors' Information:- S P PROJECTS (INDIA) PRIVATE LIMITED [Active] CIN = U45400DL2010PTC203910

Company & Directors' Information:- J R PROJECTS PRIVATE LIMITED [Strike Off] CIN = U70109HR2012PTC045119

Company & Directors' Information:- C N R PROJECTS INDIA PRIVATE LIMITED [Active] CIN = U45201KA2007PTC041355

Company & Directors' Information:- A J PROJECTS (INDIA) PRIVATE LIMITED [Strike Off] CIN = U45201MH2006PTC164622

Company & Directors' Information:- J M PROJECTS PRIVATE LIMITED [Active] CIN = U45200MP2007PTC019336

Company & Directors' Information:- L S S PROJECTS PRIVATE LIMITED [Active] CIN = U45400UP2013PTC059508

Company & Directors' Information:- A TO Z PROJECTS PRIVATE LIMITED [Strike Off] CIN = U70101DL1995PTC069527

Company & Directors' Information:- G I T T PROJECTS PRIVATE LIMITED [Strike Off] CIN = U45201TG2006PTC051193

Company & Directors' Information:- Z & I PROJECTS PRIVATE LIMITED [Strike Off] CIN = U45309TN2007PTC064972

Company & Directors' Information:- B. G. PROJECTS PRIVATE LIMITED [Active] CIN = U45400MH2012PTC231270

Company & Directors' Information:- P S R PROJECTS INDIA PRIVATE LIMITED [Active] CIN = U45400TG2015PTC101191

Company & Directors' Information:- E & E PROJECTS PRIVATE LIMITED [Active] CIN = U45400UP2015PTC075033

Company & Directors' Information:- B B R PROJECTS PRIVATE LIMITED [Active] CIN = U45200TG2005PTC045165

Company & Directors' Information:- M V R PROJECTS PRIVATE LIMITED [Active] CIN = U45200TG2005PTC045166

Company & Directors' Information:- L V S PROJECTS PRIVATE LIMITED [Under Process of Striking Off] CIN = U45200TG2010PTC068286

Company & Directors' Information:- R N V PROJECTS PRIVATE LIMITED [Active] CIN = U70102UP2011PTC044240

Company & Directors' Information:- K L PROJECTS PRIVATE LIMITED [Active] CIN = U27104DL2003PTC119655

Company & Directors' Information:- K S M PROJECTS PRIVATE LIMITED [Active] CIN = U45400DL2009PTC194824

Company & Directors' Information:- 3 G PROJECTS PRIVATE LIMITED [Strike Off] CIN = U45400DL2015PTC276736

Company & Directors' Information:- I S R PROJECTS PRIVATE LIMITED [Active] CIN = U74140DL2005PTC138210

Company & Directors' Information:- L V PROJECTS PRIVATE LIMITED [Active] CIN = U74140DL2014PTC272838

Company & Directors' Information:- M K PROJECTS PRIVATE LIMITED [Strike Off] CIN = U45201DL2002PTC117787

Company & Directors' Information:- B V M PROJECTS PRIVATE LIMITED [Active] CIN = U45201DL2004PTC131352

Company & Directors' Information:- K. J. S. PROJECTS PRIVATE LIMITED [Active] CIN = U70109DL2006PTC152898

Company & Directors' Information:- V N R PROJECTS PRIVATE LIMITED. [Active] CIN = U45400AP2008PTC060896

Company & Directors' Information:- C R R PROJECTS PRIVATE LIMITED [Active] CIN = U45400AP2015PTC097217

Company & Directors' Information:- A R P PROJECTS PRIVATE LIMITED [Active] CIN = U45200HR2012PTC044979

Company & Directors' Information:- H V PROJECTS PVT LTD [Active] CIN = U45202HR1997PTC033617

Company & Directors' Information:- V & V PROJECTS PRIVATE LIMITED [Strike Off] CIN = U70109KA2005PTC037578

Company & Directors' Information:- M S S PROJECTS PRIVATE LIMITED [Strike Off] CIN = U45202KA2005PTC037905

Company & Directors' Information:- C AND T PROJECTS PRIVATE LIMITED [Strike Off] CIN = U74140GJ2009PTC057480

Company & Directors' Information:- A AND B PROJECTS PRIVATE LIMITED [Active] CIN = U45201GJ2007PTC051077

Company & Directors' Information:- B. P. S. R. PROJECTS PRIVATE LIMITED [Active] CIN = U70109RJ2018PTC063238

Company & Directors' Information:- R M S PROJECTS PVT LTD [Strike Off] CIN = U74210DL1975PTC007946

Company & Directors' Information:- A. R. PROJECTS PRIVATE LIMITED [Strike Off] CIN = U40200DL2007PTC161559

    Civil Writ Petition No. 19210 of 2020

    Decided On, 22 December 2020

    At, High Court of Punjab and Haryana

    By, THE HONOURABLE MR. JUSTICE S. MURALIDHAR & THE HONOURABLE MR. JUSTICE AVNEESH JHINGAN

    For the Appearing Parties: Puneet Bali, Alok Mittal, P.B.A. Srinivasan, Parth Tandon, Advocates.



Judgment Text

Avneesh Jhingan, J.1. The Petitioner is a company incorporated under the Companies Act, 1956. The writ petition is filed through its authorised signatory for quashing an order dated 6th October, 2020 of the Respondent Bank (erstwhile Oriental Bank of Commerce now Punjab National Bank) whereby the re-structuring of its loan has been cancelled.2. The Petitioner is a real estate developer. The Petitioner availed a term loan from the Bank for construction of a Residential Group Housing Project "Casa Romana" at Dharuhera. On 30th January, 2014, a Rs.100 crore term loan was sanctioned. Certain properties were offered as primary and collateral securities. Due to financial constraints in 2017, the project was downsized; resultantly the term loan was reduced from Rs.100 crores to Rs.80 crores. On 12th March, 2019, the Petitioner sought permission from the Bank for selling the collateral securities. There was a default in repayment of the loan and on 2nd April 2019, the account was declared as Non-Performing Asset ('NPA'). Thereafter, the Bank allowed the request of the Petitioner for sale of the collateral security, subject to deposit of Rs.18 crores.3. On 15th April 2019, a notice under Section 13 (2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ('the Act') was issued by the Bank to the Petitioner. In terms of the said notice, the amount due as of that date was Rs.53,14,36,305/- plus future interest and other charges. On 26th May 2019, objections under Section 13 (3A) of the Act were filed to the notice and a request was made by the Petitioner for re-structuring of the loan. Thereafter reminders were sent for re-structuring. On 4th January 2020, the loan was re-structured by the Bank subject to the pre-condition that the Petitioner had to infuse Rs.1.20 crore. The repayment of Funded Interest Term Loan ('FITL') was to be made in five equated quarterly instalments. The first instalment was to be paid upto 31st March, 2020. There was a moratorium period upto 31st December, 2019 from the cut-off date (i.e. 31st October 2019).4. The Petitioner failed to deposit the first instalment and made a request on 27th March, 2020 for providing a further moratorium. There was also a failure to deposit the second and third instalments. On 6th October 2020, the Bank terminated the re-structuring of the loan. On 16th October 2020, the Petitioner replied to the termination intimation. The Bank then served a legal notice-cum-demand notice dated 30th October 2020, seeking repayment of dues of Rs.63.25 crore (interest and penal charges upto 30th September, 2020) within 10 days. At this stage, the present petition was filed.5. Mr. Puneet Bali, learned Senior counsel for the Petitioner contends that the termination of the re-structuring of the loan is bad for lack of prior intimation. The order of termination is vague and not reasoned. It is argued that the Bank has wrongly recorded in impugned order that the Petitioner had not infused Rs.1.20 crore into the project account when there was no such specific condition. He relies upon the certificate dated 16th January, 2020 issued by the Chartered Accountant ('CA') to show that Rs.1.20 crores were in fact contributed by promotees. It is further argued that the Bank had to sell the some of the properties mortgaged after No Objection Certificate ('NOC') from the Petitioner but it failed to do so. The grievance is that due to the COVID-19 situation, the moratorium as per the RBI Circular should have been extended. He states that if sufficient time is provided, the Petitioner was even now willing to infuse the aforementioned amount of Rs. 1.2 crores into the project account.6. Mr. P.B.A. Srinivasan, learned counsel for the Bank, refuted the contentions raised by Mr. Bali. He contended that the Petitioner failed to comply with precondition of re-structuring i.e. infusing Rs.1.20 crore into the project account, there is no such reflection in the account of the Petitioner with the Bank. The termination of the re-structuring is defended on the ground that the Petitioner failed to comply with the terms and conditions of re-structuring. It is pointed out that in spite of the Bank granting the NOC, the Petitioner never sold the collateral security. The Petitioner had to exclusively deal with the Bank, whereas as per certificate issued by the CA the Petitioner had violated the said condition.7. Before proceeding further, the relevant portion of terms and conditions of restructuring are reproduced below:Facility-2Nature of facility-II FITL I (funded interest term loan)Amount Rs.6.30 Crore (Rs. Six Crore and Thirty Lacs Only)Purpose Overdue interest on existing term loan as on Cutoff DatePrimary Security As per security columnCollateral SecurityMargin Not applicableInterest 12.50% p.a. (linked to 1 Yr. MCLR at the date of sanction). Interest shall be serviced as and when due.The bench mark MCLR rate so applicable shall remain fixed for a period of one year. The effective MCLR Benchmark rate shall be communicated on the date of sanction. ROI shall not be lower than 1 Yr. MCLR of the bank at any point of time.Penal interest @ 2% p.a. over and above the normal rate on overdue portion shall be charged.Reset of Benchmark The benchmark MCLR Rate shall be reset at frequency MCLR Rate (Yearly) linked to date of sanction.Reset of spread The applicable spread shall be reset on review/ renewal date/change in credit profile of the borrower.Further, the Bank shall have right to review/withdraw the Concession granted in the account and/or Review of Applicable Rol/Service Charges in the event of downgradation in External Rating/Internal Rating with reference to Date of Sanction).Interest Reset, if any On annual reviewMoratorium Period Upto 31st Dec. 2019 from cutoff dateRepayment FITL 1 amount shall be repaid in 5 structured quarterly installments starting from 31st March, 2020 (date of first installment) to 31st March, 2021 (date of last installment) as under:Other Approvals:-(a) NOC to sell the Collateral secur4ity i.e. Warehouse land measuring area 6.693 Acres situated at Village Ghatal Maniwas, Dharuhera, Rewari, Haryana belonging to M/s Navtech Projects Pvt. Ltd. to pay off Term Loan outstanding to the extent of sale proceedings.(b) NOC to develop and sell the plots on land measuring 4.862 acres situated at Sec-22, Dharuhera, Rewari, Haryana currently which is not part of the project land/prime security due to reduction of project size and loan amount from Rs. 100 Crores to 80 Crores.(c) Waiver/relaxations/concessions in penal charges from the cutoff date (31.10.19) in line with restructuring.xx xx xxCollateral Security Equitable mortgage of Immovable Properties: Description(Res./Com./Agrl.Land) and address Total Area Sq. Name of Owner(s)Exclusive charges over Warehouse Land admeasuring 6.69375 acres (53 kanal 11 Marla) situated at Village Ghatal Maniawas, Dharuhera, Rewari, Haryana belonging to group company M/s Navtech Projects Pvt. Ltd. 27063.12 Sq.metersM/s NavtechProjects Pvt. Ltd.(2) All related documentation, including execution of necessary agreements between landers and borrower/creation of security charge/perfection of securities are completed prior to implementation of restructuring in consultation with respective legal retainer/Law Officer and charges in the terms of conditions of the existing loans get duly reflected in the books of bank and the borrower.(3) Promoters shall infuse promoter's contribution amounting to Rs.1.20 Crore after cutoff date as per restructuring plan upfront prior to implementation of restructuring towards bank's certificate. A CA certificate in this regard shall be obtained and kept on record.(4) Comprehensive insurance of all the securities shall be done and all the cost in this regard shall be borne by the borrower.xx xx xxVARIOUS UNDERTAKINGS TO BE OBTAINED FROM THE BORROWER ON LETTER PAD.(As applicable according to the constitution of the borrower/ to be discussed with the borrower before stipulating any undertaking)The borrower shall undertake:1. To maintain deposits (unsecured loans) by family members, friends and relatives or directors/partners at estimated/projected level during the currency of the Bank's advance.2. That the names of Borrower or its Directors/Partners or Guarantors do not figure in any list of defaulters circulated by RBI or any bank and Financial Institution nor do the names of partners/directors/guarantor appear in caution list issued by RBI/CIBIL/ECGC etc.3. To deal with our bank exclusively, shall not open current account/s with any other bank without our prior permission. The borrower's entire business relating to their activity including deposit, remittances, bills/cheque purchase, non-fund based transactions including LCs and Bgs. Forex transactions, merchant banking, any interest rate or currency hedging business etc. should be restricted only to the financing bank i.e. our bank.xx xx xx55. Unconditional Cancellable Clause (UCC): The Bank shall have absolute discretion to reduce/stop/cancel the said loan facility or refuse to enhance the aforesaid loan facility subsequent to the initial disbursement of the credit facility or to reduce/stop/cancel sanctioned credit facility and/or financial assistance without notice to the borrower and the Borrower shall have no right to question, challenge or dispute the said discretion and act of the Bank. The Bank shall intimate the borrower before cancellation/Reduction/ Stoppage of the limits. The Bank will always be at liberty in its discretion to stop making advances at any time without previous notice and without assigning any reason whatsoever to the Borrower even though the said limit has not been fully availed by the Borrower.8. From the terms and conditions, it is evident that there was a moratorium period from the cut-off date i.e. 31st October, 2019 till 31st December, 2019. The FITL was to be paid in five structured quarterly instalments starting from 31st March, 2020, the last instalment payable by 31st March, 2021. The Petitioner had to infuse Rs.1.20 crore after 31st October 2019, upfront prior to implementation of the restructuring. The Bank was to issue NOC for selling the land situated in village Ghatal Maniawas, Dharuhera belonging to M/s Navtech Projects Pvt. Ltd., to pay the outstanding to the extent of sale proceeds. Further, the NOC was to be issued to develop and sell the plots on land situated at Sector-22, Dharuhera which was not part of the project due to reduction of the project size. The Petitioner had to exclusively deal its finances with the Respondent Bank. The entire business related activity including deposit, remittance etc. were to be restricted only to the Respondent Bank. There was an unconditional cancellable clause in the terms and conditions.9. The Petitioner miserably failed to fulfil the obligations cast upon it by the terms and conditions. The Petitioner had to infuse Rs.1.20 crore prior to implementation of the restructuring, however, the petitioner failed to do so. The certificate dated 16th January, 2020 issued by the C.A. nowhere established that the said amount was infused as per the terms and conditions. There was no deposit in the bank account of the petitioner with the Respondent Bank. There was a clause obliging the Petitioner to have exclusive dealing with the Respondent Bank despite which not a penny of the contribution was deposited in the account with the Respondent Bank. The pleadings reveal that the alleged infusion of funds was done through Karur Vysya Bank. Even if it is taken that the said amount was withdrawn from the other bank yet same was not deposited in account of the petitioner with the Respondent Bank.10. In this context, it would be relevant to reproduce the last paragraph of the CA certificate, which reads thus:"This Certificate has been issued on the basis of examination of books of accounts and other records produced before us and information and explanation provided to us by the management of the Company without any liability on our part."From the language of the above sentence, it is evident that while issuing certificate even reliability of the account books so produced has not been certified.11. As per 'other approvals' quoted above, the Petitioner had to sell collateral securities at village Ghatal Maniawas, Dharuhera and develop and sell the plots situated at Sector 22, Dharuhera. In spite of issuance of an NOC by the Bank, the Petitioner failed to do the needful. The contention of Mr. Bali that the Bank had to sell the collateral security is misplaced. From a reading of the terms and conditions, it is clear that the NOC was to be issued by the Bank and the sale of collateral security as well as development and sale of property at Sector 22, Dharuhera was to be undertaken by the Petitioner.12. It is admitted fact that not even a single instalment out of the five structured quarterly instalments was deposited. The reliance by Mr. Bali on the circular se

Please Login To View The Full Judgment!

eking further moratorium is noted only to be rejected. As pointed out by Mr. Srinivasan, the Petitioner's account was declared NPA long before the said circular i.e. way back in April, 2019 and therefore was not covered by the said circular. Moreover, the restructuring never kick started as the Petitioner failed to infuse the sum of Rs. 1.2 crores as per the pre-condition for restructuring.13. The contention of the Petitioner that there was no prior intimation in terms of clause-55 before termination of the restructuring, is not well-founded. From the impugned order, it is evident that the Petitioner, during the visits to its site and visit to the Bank, was informed about its failure to fulfil the obligations cast by the restructuring document. There was no progress and the Bank was left with no other alternative except to terminate the restructuring.14. The contention that the termination order is vague and not well reasoned does not advance the case of the Petitioner. The termination was on account of noncompliance of the terms and conditions. The Petitioner has miserably failed even to prima facie establish that it honoured its part of terms and conditions.15. No case is made out for interfere with the impugned order. The writ petition is accordingly dismissed. Nevertheless, the Petitioner would be at the liberty to avail of the alternative remedies available to it in law against the legal notice/demand issued by the Bank.
O R