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



The Deputy General Manager, Small Industries Development Bank of India, Coimbatore & Another v/s M/s. Annamalai Hotels (Pvt.) Ltd., Rep.by its Managing Director, P. Velusamy, Coimbatore


Company & Directors' Information:- T T G INDUSTRIES LIMITED [Active] CIN = U27209TN1987PLC014169

Company & Directors' Information:- V I P INDUSTRIES LIMITED [Active] CIN = L25200MH1968PLC013914

Company & Directors' Information:- A L M INDUSTRIES LIMITED [Active] CIN = U14100DL1996PLC129067

Company & Directors' Information:- S R K INDUSTRIES LIMITED [Active] CIN = L17121MH1991PLC257750

Company & Directors' Information:- S R INDUSTRIES LTD [Active] CIN = L29246PB1989PLC009531

Company & Directors' Information:- F E INDUSTRIES PRIVATE LIMITED [Active] CIN = U36100PB2003PTC026482

Company & Directors' Information:- A B HOTELS LIMITED [Active] CIN = U55101DL1990PLC038876

Company & Directors' Information:- N K INDUSTRIES LIMITED [Active] CIN = L91110GJ1987PLC009905

Company & Directors' Information:- G B J HOTELS PRIVATE LIMITED [Active] CIN = U55101TZ2008PTC014695

Company & Directors' Information:- J HOTELS PRIVATE LIMITED [Active] CIN = U55101TN1998PTC040526

Company & Directors' Information:- G S R HOTELS LIMITED [Active] CIN = U22101CH1997PLC020169

Company & Directors' Information:- G S R HOTELS LIMITED [Active] CIN = U22101DL1997PLC313706

Company & Directors' Information:- T S I INDUSTRIES PRIVATE LIMITED [Under Process of Striking Off] CIN = U18101HR1997PTC034478

Company & Directors' Information:- B L A INDUSTRIES PRIVATE LIMITED. [Active] CIN = U10200MH1964PTC162314

Company & Directors' Information:- C & R HOTELS PRIVATE LIMITED [Active] CIN = U55101KL2009PTC024993

Company & Directors' Information:- A M N HOTELS PRIVATE LIMITED [Converted to LLP] CIN = U55100TG2002PTC038335

Company & Directors' Information:- J S K HOTELS PRIVATE LIMITED [Active] CIN = U55101RJ1982PTC002554

Company & Directors' Information:- H G I INDUSTRIES LIMITED [Active] CIN = L40200WB1944PLC011754

Company & Directors' Information:- R P INDUSTRIES PRIVATE LIMITED [Active] CIN = U27100GJ2011PTC075812

Company & Directors' Information:- D D INDUSTRIES LIMITED [Active] CIN = U74899DL1974PLC007169

Company & Directors' Information:- U P HOTELS LIMITED [Active] CIN = L55101DL1961PLC017307

Company & Directors' Information:- A G INDUSTRIES PVT LTD [Active] CIN = U27300HR1991PTC031378

Company & Directors' Information:- H. J. INDUSTRIES (INDIA) PRIVATE LIMITED [Active] CIN = U17120GJ2010PTC060769

Company & Directors' Information:- V HOTELS LIMITED [Active] CIN = U55204MH2000PLC128527

Company & Directors' Information:- G K HOTELS LTD [Active] CIN = U55101CH1995PLC016071

Company & Directors' Information:- G R S INDUSTRIES LIMITED [Active] CIN = U00000PB2005PLC029159

Company & Directors' Information:- T S L INDUSTRIES LIMITED [Active] CIN = L65999WB1994PLC065255

Company & Directors' Information:- M F B INDUSTRIES LIMITED [Active] CIN = U31401TN1989PLC018274

Company & Directors' Information:- A C M E INDUSTRIES LIMITED [Dormant under section 455] CIN = U19119DL1992PLC048914

Company & Directors' Information:- BANK OF INDIA LIMITED [Active] CIN = U99999MH1906PLC000243

Company & Directors' Information:- V S P INDUSTRIES PRIVATE LIMITED [Active] CIN = U17111TZ2005PTC011820

Company & Directors' Information:- M N INDUSTRIES PRIVATE LIMITED [Active] CIN = U24100TG2012PTC079737

Company & Directors' Information:- G I INDUSTRIES PRIVATE LIMITED [Active] CIN = U15312PB2010PTC033806

Company & Directors' Information:- E T C INDUSTRIES LIMITED [Active] CIN = U31200MP1995PLC009281

Company & Directors' Information:- M HOTELS PRIVATE LIMITED [Active] CIN = U55100MH2005PTC157642

Company & Directors' Information:- S K INDUSTRIES PVT LTD [Active] CIN = U74899DL1991PTC045572

Company & Directors' Information:- H R B HOTELS PRIVATE LIMITED [Active] CIN = U55101KA1984PTC047416

Company & Directors' Information:- S R V E INDUSTRIES LIMITED [Active] CIN = U03210TZ2006PLC012577

Company & Directors' Information:- REP CORPORATION PRIVATE LIMITED [Strike Off] CIN = U26921TN2005PTC055138

Company & Directors' Information:- Z H INDUSTRIES PRIVATE LIMITED [Active] CIN = U45200DL2014PTC265453

Company & Directors' Information:- P AND P INDUSTRIES LIMITED [Strike Off] CIN = U21010MH1992PLC068885

Company & Directors' Information:- J J DEVELOPMENT PRIVATE LIMITED [Active] CIN = U50300WB1996PTC081491

Company & Directors' Information:- N G INDUSTRIES LTD [Active] CIN = L74140WB1994PLC065937

Company & Directors' Information:- S L INDUSTRIES P. LTD. [Active] CIN = U15331WB1989PTC047543

Company & Directors' Information:- AMP INDUSTRIES LIMITED [Active] CIN = L51909AS1985PLC002332

Company & Directors' Information:- T R A T INDUSTRIES LIMITED [Active] CIN = U25199KL1996PLC010148

Company & Directors' Information:- B R INDUSTRIES LIMITED [Active] CIN = U74899DL1995PLC067120

Company & Directors' Information:- N M INDUSTRIES PRIVATE LIMITED [Active] CIN = U74120DL2008PTC175664

Company & Directors' Information:- N R C INDUSTRIES LIMITED [Active] CIN = U51909PB1985PLC006558

Company & Directors' Information:- S N L INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U17115RJ1994PTC008053

Company & Directors' Information:- G J HOTELS PVT LTD [Active] CIN = U55101CH1985PTC006087

Company & Directors' Information:- J V INDUSTRIES PRIVATE LIMITED [Active] CIN = U74899DL1994PTC057081

Company & Directors' Information:- B G R HOTELS PVT LTD [Active] CIN = U55101KL1992PTC006396

Company & Directors' Information:- A R INDUSTRIES PVT LTD [Active] CIN = U27101HR1995PTC032569

Company & Directors' Information:- D V S INDUSTRIES PRIVATE LIMITED [Active] CIN = U74899DL1992PTC049221

Company & Directors' Information:- C. R. HOTELS INDIA PRIVATE LIMITED [Active] CIN = U55101TZ2011PTC017206

Company & Directors' Information:- C D INDUSTRIES LIMITED [Active] CIN = U27100MH1996PLC101277

Company & Directors' Information:- G V INDUSTRIES INDIA PRIVATE LIMITED [Active] CIN = U74900TG2014PTC096387

Company & Directors' Information:- G S M INDUSTRIES PRIVATE LIMITED [Active] CIN = U02001DL2002PTC117443

Company & Directors' Information:- B G INDUSTRIES LTD [Active] CIN = U26921ML1980PLC001830

Company & Directors' Information:- P K INDUSTRIES PRIVATE LIMITED [Active] CIN = U51900DL2012PTC241654

Company & Directors' Information:- M D INDUSTRIES PRIVATE LIMITED [Active] CIN = U91110GJ1994PTC022025

Company & Directors' Information:- L C INDUSTRIES PRIVATE LIMITED [Active] CIN = U15122UP2013PTC055697

Company & Directors' Information:- G. A. INDUSTRIES PRIVATE LIMITED [Active] CIN = U15435MH2005PTC151817

Company & Directors' Information:- P A S INDUSTRIES INDIA PRIVATE LIMITED [Active in Progress] CIN = U17121TZ2005PTC012171

Company & Directors' Information:- V AND S INDUSTRIES PRIVATE LIMITED [Active] CIN = U74899DL1990PTC039251

Company & Directors' Information:- M K J INDUSTRIES PRIVATE LIMITED [Active] CIN = U19111UP1989PTC010468

Company & Directors' Information:- S S F INDUSTRIES LIMITED [Active] CIN = U25190BR1988PLC003160

Company & Directors' Information:- K T C HOTELS LTD [Active] CIN = U55101KL1984PLC004105

Company & Directors' Information:- P B INDUSTRIES PRIVATE LIMITED [Active] CIN = U29120MP1994PTC008840

Company & Directors' Information:- R & M INDUSTRIES PRIVATE LIMITED [Active] CIN = U24297TN1972PTC006185

Company & Directors' Information:- A M INDUSTRIES LTD [Active] CIN = U21012WB1977PLC030854

Company & Directors' Information:- A AND S INDUSTRIES PRIVATE LIMITED [Active] CIN = U17117DL1995PTC064137

Company & Directors' Information:- M C INDUSTRIES LTD [Active] CIN = U27106WB1993PLC058995

Company & Directors' Information:- D R INDUSTRIES PRIVATE LIMITED [Active] CIN = U24100WB2011PTC160058

Company & Directors' Information:- J R HOTELS PRIVATE LIMITED [Active] CIN = U55101MH1976PTC019340

Company & Directors' Information:- R. L. F. INDUSTRIES LIMITED [Active] CIN = U51909DL1983PLC015262

Company & Directors' Information:- U K INDUSTRIES PRIVATE LIMITED [Active] CIN = U24241WB1988PTC044355

Company & Directors' Information:- M G I INDUSTRIES PVT LTD [Active] CIN = U27310GJ2006PTC048707

Company & Directors' Information:- A D INDUSTRIES PRIVATE LIMITED [Active] CIN = U18101WB2008PTC131561

Company & Directors' Information:- V J INDUSTRIES PRIVATE LIMITED [Active] CIN = U29253KA2009PTC050226

Company & Directors' Information:- A A HOTELS PRIVATE LIMITED [Active] CIN = U51109WB2007PTC119244

Company & Directors' Information:- V T INDUSTRIES PVT LIMITED [Active] CIN = U29150WB1985PLC039217

Company & Directors' Information:- V T INDUSTRIES PVT LIMITED [Active] CIN = U29150WB1985PTC039217

Company & Directors' Information:- G R INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U34300PB1996PTC018671

Company & Directors' Information:- M. K. INDUSTRIES PRIVATE LIMITED [Active] CIN = U15549WB2008PTC130116

Company & Directors' Information:- R S V INDUSTRIES PRIVATE LIMITED [Active] CIN = U52399MH2008PTC180489

Company & Directors' Information:- K. A. INDUSTRIES PRIVATE LIMITED [Active] CIN = U14220JH2008PTC013409

Company & Directors' Information:- D K INDUSTRIES LIMITED [Active] CIN = U45202CH1994PLC014627

Company & Directors' Information:- L N DEVELOPMENT LIMITED [Active] CIN = U70102ML1986PLC002590

Company & Directors' Information:- D G INDUSTRIES PVT LTD [Active] CIN = U36942WB1946PTC013526

Company & Directors' Information:- R I L INDUSTRIES PRIVATE LIMITED [Active] CIN = U70101DL1993PTC052678

Company & Directors' Information:- I S INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U29100GJ2009PTC057308

Company & Directors' Information:- B M INDUSTRIES PRIVATE LIMITED [Active] CIN = U17000MH1997PTC109621

Company & Directors' Information:- M I S HOTELS PRIVATE LIMITED [Active] CIN = U55101UR2014PTC001087

Company & Directors' Information:- R V S INDUSTRIES PRIVATE LIMITED [Active] CIN = U17111TZ1995PTC006398

Company & Directors' Information:- B N INDUSTRIES PRIVATE LIMITED [Active] CIN = U67120AS1994PTC004273

Company & Directors' Information:- A J INDUSTRIES PRIVATE LIMITED [Active] CIN = U17120MH2004PTC145040

Company & Directors' Information:- S. A. A INDUSTRIES PRIVATE LIMITED [Active] CIN = U01549TZ1997PTC007927

Company & Directors' Information:- K K S K INDUSTRIES PRIVATE LIMITED [Active] CIN = U19201TZ1997PTC007687

Company & Directors' Information:- C R I INDUSTRIES PRIVATE LIMITED [Amalgamated] CIN = U29120TZ2002PTC010129

Company & Directors' Information:- A C T INDUSTRIES PRIVATE LIMITED [Active] CIN = U74899DL1984PTC018724

Company & Directors' Information:- G B INDUSTRIES PRIVATE LIMITED [Active] CIN = U29220PN2011PTC139883

Company & Directors' Information:- S D B INDUSTRIES LIMITED [Active] CIN = U27107MP1996PLC010394

Company & Directors' Information:- M M INDUSTRIES PRIVATE LIMITED [Active] CIN = U31300CT2008PTC020916

Company & Directors' Information:- A C INDUSTRIES PVT LTD [Active] CIN = U29299WB2006PTC109474

Company & Directors' Information:- K M INDUSTRIES PRIVATE LIMITED [Converted to LLP and Dissolved] CIN = U74899DL1991PTC043295

Company & Directors' Information:- C J INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U25209MH1998PTC116707

Company & Directors' Information:- N P INDUSTRIES LTD [Strike Off] CIN = U15549PB1989PLC009426

Company & Directors' Information:- J. L. INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U29141MP2008PTC020731

Company & Directors' Information:- I K INDUSTRIES PRIVATE LIMITED [Active] CIN = U24100MH2010PTC199474

Company & Directors' Information:- H. D. INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U27310MH2011PTC216080

Company & Directors' Information:- R. D. G. INDUSTRIES PRIVATE LIMITED [Active] CIN = U26960DL2008PTC182480

Company & Directors' Information:- R B INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U28999DL2008PTC177248

Company & Directors' Information:- H & H INDUSTRIES PRIVATE LIMITED [Active] CIN = U34100DL2010PTC204604

Company & Directors' Information:- M J INDUSTRIES PRIVATE LIMITED [Active] CIN = U15203KA2011PTC060675

Company & Directors' Information:- B R V INDUSTRIES PRIVATE LIMITED [Active] CIN = U32301UP1995PTC018704

Company & Directors' Information:- A. G. INDUSTRIES LIMITED [Strike Off] CIN = U25201UP1994PLC017291

Company & Directors' Information:- B R INDUSTRIES LIMITED [Strike Off] CIN = U15204AS1993PLC003930

Company & Directors' Information:- I P M INDUSTRIES LIMITED [Active] CIN = U25200DL1995PLC068554

Company & Directors' Information:- M R INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U74900UP2008PTC036443

Company & Directors' Information:- R D I INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U74900DL1995PTC065508

Company & Directors' Information:- J G INDUSTRIES LTD [Active] CIN = L15141WB1983PLC035931

Company & Directors' Information:- V G INDUSTRIES PRIVATE LIMITED [Active] CIN = U15139JK2015PTC004570

Company & Directors' Information:- F & S HOTELS PRIVATE LIMITED [Active] CIN = U74899DL2001PTC109212

Company & Directors' Information:- A AND A HOTELS PRIVATE LIMITED [Active] CIN = U55101MH2006PTC163476

Company & Directors' Information:- K T B HOTELS PRIVATE LIMITED [Active] CIN = U55101DL2005PTC132607

Company & Directors' Information:- S N INDUSTRIES PRIVATE LIMITED [Active] CIN = U29211UP1951PTC002319

Company & Directors' Information:- M. A. R. K. HOTELS LIMITED [Dissolved] CIN = U74899DL1989PLC038453

Company & Directors' Information:- M A HOTELS PRIVATE LIMITED [Active] CIN = U55101DL2005PTC137818

Company & Directors' Information:- S A HOTELS PRIVATE LIMITED [Strike Off] CIN = U55101UP1990PTC011570

Company & Directors' Information:- K G INDUSTRIES PVT LTD [Active] CIN = U29130WB1951PTC019868

Company & Directors' Information:- N S INDUSTRIES PRIVATE LIMITED [Under Process of Striking Off] CIN = U74120UP2012PTC053986

Company & Directors' Information:- W W I INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U29300MH1997PTC112589

Company & Directors' Information:- D U INDUSTRIES PRIVATE LIMITED [Active] CIN = U29230GJ2016PTC091588

Company & Directors' Information:- A V HOTELS PVT LTD [Active] CIN = U70101WB1981PTC033457

Company & Directors' Information:- L P HOTELS PRIVATE LIMITED [Under Process of Striking Off] CIN = U55101UR2009PTC032922

Company & Directors' Information:- V AND M HOTELS PRIVATE LIMITED [Strike Off] CIN = U55100MH1978PTC020539

Company & Directors' Information:- S R P INDUSTRIES LIMITED [Amalgamated] CIN = U00061BR1984PLC002023

Company & Directors' Information:- A K HOTELS PRIVATE LIMITED [Active] CIN = U55101CH1988PTC008259

Company & Directors' Information:- M P HOTELS PVT LTD [Active] CIN = U55101MP1982PTC002065

Company & Directors' Information:- D P S DEVELOPMENT PVT LTD [Active] CIN = U45202WB1988PTC044797

Company & Directors' Information:- T K HOTELS PRIVATE LIMITED [Active] CIN = U55101MH1982PTC028567

Company & Directors' Information:- M AND H HOTELS PRIVATE LIMITED [Strike Off] CIN = U51101PB1997PTC019622

Company & Directors' Information:- C P INDUSTRIES PVT LTD [Strike Off] CIN = U29303MP1949PTC000846

Company & Directors' Information:- C K S HOTELS PRIVATE LIMITED [Active] CIN = U55100JK1998PTC001920

Company & Directors' Information:- J B INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U74999MH2013PTC245506

Company & Directors' Information:- S J V INDUSTRIES LTD [Amalgamated] CIN = U15421WB1982PLC035521

Company & Directors' Information:- V V INDUSTRIES PVT LTD [Strike Off] CIN = U99999DL1980PTC010427

Company & Directors' Information:- K K INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U65100DL1982PTC013046

Company & Directors' Information:- A T C INDUSTRIES LTD [Strike Off] CIN = U27109AS1984PLC002201

Company & Directors' Information:- N V INDUSTRIES PVT LTD [Active] CIN = U51909WB1953PTC020952

Company & Directors' Information:- C S HOTELS PRIVATE LIMITED [Active] CIN = U55101GJ1974PTC002534

Company & Directors' Information:- K K HOTELS PVT LTD [Active] CIN = U55101HP1989PTC009715

Company & Directors' Information:- K B HOTELS PVT LTD [Active] CIN = U55101CH1991PTC011173

Company & Directors' Information:- R B HOTELS PRIVATE LIMITED [Active] CIN = U55101GJ1995PTC028058

Company & Directors' Information:- H S HOTELS PVT LTD. [Active] CIN = U55101WB1989PTC046968

Company & Directors' Information:- A G HOTELS PVT LTD [Strike Off] CIN = U55101WB1984PTC038328

Company & Directors' Information:- P N HOTELS PRIVATE LIMITED [Strike Off] CIN = U85110UR1995PTC018733

Company & Directors' Information:- A TO Z INDUSTRIES PVT LTD [Strike Off] CIN = U31908AS1987PTC002804

Company & Directors' Information:- G. C. HOTELS PRIVATE LIMITED [Active] CIN = U55101UP1993PTC015240

Company & Directors' Information:- L K INDUSTRIES PRIVATE LIMITED [Active] CIN = U17291MH2012PTC233546

Company & Directors' Information:- I A. HOTELS LIMITED [Active] CIN = U55101MH1999PLC122295

Company & Directors' Information:- S R P HOTELS PRIVATE LIMITED [Active] CIN = U55101WB2007PTC118358

Company & Directors' Information:- V R HOTELS PRIVATE LIMITED [Active] CIN = U55101DL2004PTC130182

Company & Directors' Information:- G S C INDUSTRIES PRIVATE LTD [Active] CIN = U92114DL1956PTC002616

Company & Directors' Information:- L G HOTELS PRIVATE LIMITED [Active] CIN = U55101CH1996PTC018082

Company & Directors' Information:- D. V. HOTELS PRIVATE LIMITED [Active] CIN = U55101UP1995PTC018908

Company & Directors' Information:- S S HOTELS PVT LTD [Strike Off] CIN = U55109MP1984PTC002350

Company & Directors' Information:- DEVELOPMENT CORPN PVT LTD [Active] CIN = U13209WB1939PTC009750

Company & Directors' Information:- G G INDUSTRIES PRIVATE LIMITED [Active] CIN = U27320UP1969PTC003282

Company & Directors' Information:- D AND P HOTELS PRIVATE LIMITED [Active] CIN = U55101MH2005PTC154144

Company & Directors' Information:- K S INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U31909MH1960PTC011707

Company & Directors' Information:- C M HOTELS PRIVATE LIMITED [Strike Off] CIN = U55101WB1997PTC084897

Company & Directors' Information:- K S HOTELS PRIVATE LIMITED [Active] CIN = U74899DL1991PTC043380

Company & Directors' Information:- K V HOTELS PRIVATE LIMITED [Active] CIN = U55101TZ1989PTC029164

Company & Directors' Information:- M HOTELS PRIVATE LIMITED [Active] CIN = U55101TG2010PTC067252

Company & Directors' Information:- R C HOTELS PVT LTD [Active] CIN = U55101DL2001PTC110410

Company & Directors' Information:- S K HOTELS PRIVATE LIMITED [Active] CIN = U55101DL2009PTC193917

Company & Directors' Information:- P R INDUSTRIES PVT LTD [Active] CIN = U21014DL1971PTC005738

Company & Directors' Information:- R K I INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U29190DL2012PTC233413

Company & Directors' Information:- K V HOTELS PRIVATE LIMITED [Active] CIN = U55101KA1989PTC010201

Company & Directors' Information:- M P HOTELS PVT LTD [Not available for efiling] CIN = U55101PB1981PTC004587

Company & Directors' Information:- R K INDUSTRIES PVT LTD [Strike Off] CIN = U25202AS1988PTC003132

Company & Directors' Information:- H K HOTELS PVT LTD [Strike Off] CIN = U55101DL1999PTC101191

Company & Directors' Information:- R R HOTELS PRIVATE LIMITED [Strike Off] CIN = U55200MH1972PTC015900

Company & Directors' Information:- GENERAL BANK PRIVATE LIMITED [Dissolved] CIN = U93090TN1935PTC000845

Company & Directors' Information:- P AND P HOTELS PVT LTD [Strike Off] CIN = U00069GA1978PTC000351

Company & Directors' Information:- T F G HOTELS PVT. LTD. [Strike Off] CIN = U74140DL1987PTC027354

Company & Directors' Information:- S G R INDUSTRIES PVT LTD [Strike Off] CIN = U25199WB1948PTC016397

Company & Directors' Information:- B J HOTELS PRIVATE LIMITED [Active] CIN = U55100MH1971PTC015355

Company & Directors' Information:- M & D HOTELS PRIVATE LIMITED [Strike Off] CIN = U55101TG2013PTC085223

Company & Directors' Information:- S M A HOTELS PRIVATE LIMITED [Active] CIN = U99999TG1997PTC026451

Company & Directors' Information:- K R INDUSTRIES INDIA PRIVATE LIMITED [Active] CIN = U25190KA2012PTC062367

Company & Directors' Information:- O P J HOTELS PRIVATE LIMITED [Active] CIN = U55101WB2009PTC134809

Company & Directors' Information:- Y K INDUSTRIES PRIVATE LIMITED [Active] CIN = U19115UP2012PTC051151

Company & Directors' Information:- E S INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U74999TN2012PTC086119

Company & Directors' Information:- I B INDUSTRIES LTD. [Strike Off] CIN = U28992WB1990PLC050469

Company & Directors' Information:- GENERAL INDUSTRIES LTD [Strike Off] CIN = U36900WB1934PLC007878

Company & Directors' Information:- V I INDUSTRIES LTD [Strike Off] CIN = U36934WB1951PLC019890

Company & Directors' Information:- N BANK LTD [Strike Off] CIN = U65191WB1924PLC000442

Company & Directors' Information:- J A HOTELS INDIA PRIVATE LIMITED [Active] CIN = U55101DL2009PTC193240

Company & Directors' Information:- P K HOTELS PRIVATE LIMITED [Strike Off] CIN = U74899DL1986PTC023280

Company & Directors' Information:- J M INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U05002UP1952PTC002456

Company & Directors' Information:- J S HOTELS PRIVATE LIMITED [Active] CIN = U55101MH2003PTC141344

Company & Directors' Information:- J P HOTELS PRIVATE LIMITED [Converted to LLP and Dissolved] CIN = U55101PN1982PTC018193

Company & Directors' Information:- L F INDUSTRIES PRIVATE LIMITED [Active] CIN = U17291UP2015PTC068602

Company & Directors' Information:- B & T HOTELS PRIVATE LIMITED [Strike Off] CIN = U55101WB2004PTC098132

Company & Directors' Information:- A K S INDUSTRIES PVT LTD [Active] CIN = U27201WB1946PTC013433

Company & Directors' Information:- V M V INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U26990GJ2013PTC076945

Company & Directors' Information:- S K INDUSTRIES LIMITED [Under Process of Striking Off] CIN = U29248PN1948PLC001948

Company & Directors' Information:- H B HOTELS PVT LTD [Strike Off] CIN = U55101PB1991PTC011410

Company & Directors' Information:- A R HOTELS PVT LTD [Strike Off] CIN = U55101PB1994PTC014216

Company & Directors' Information:- S P INDUSTRIES PVT LTD [Strike Off] CIN = U20232AS1980PTC001853

Company & Directors' Information:- J G M HOTELS PRIVATE LIMITED [Strike Off] CIN = U55101DL1987PTC027176

Company & Directors' Information:- S L HOTELS PRIVATE LIMITED [Strike Off] CIN = U55200MH1975PTC018532

Company & Directors' Information:- A-I HOTELS PVT LTD [Strike Off] CIN = U55200MH1981PTC025530

Company & Directors' Information:- J P HOTELS PVT LTD [Strike Off] CIN = U55200MH1982PTC028176

Company & Directors' Information:- V N R INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U21090AP2012PTC081525

Company & Directors' Information:- A K INDUSTRIES PVT LTD [Active] CIN = U51109WB1944PTC011764

Company & Directors' Information:- B S HOTELS PRIVATE LIMITED [Strike Off] CIN = U55101DL2003PTC121996

Company & Directors' Information:- P N N BANK LIMITED [Strike Off] CIN = U65921TZ1948PLC000153

Company & Directors' Information:- K INDUSTRIES PVT LTD [Strike Off] CIN = U99999KA1946PTC000938

Company & Directors' Information:- G I P INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U52605MH2015PTC263962

Company & Directors' Information:- C. L. INDUSTRIES PRIVATE LIMITED [Active] CIN = U27109RJ2014PTC045306

Company & Directors' Information:- R. A. M INDUSTRIES PRIVATE LIMITED [Active] CIN = U17120MH2014PTC254820

Company & Directors' Information:- S. B. INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U74900PN2012PTC144181

Company & Directors' Information:- U & I HOTELS PRIVATE LIMITED [Active] CIN = U74999MH2015PTC266678

Company & Directors' Information:- M N HOTELS PRIVATE LIMITED [Converted to LLP] CIN = U55101TG2006PTC050625

Company & Directors' Information:- A & P INDUSTRIES PRIVATE LIMITED [Active] CIN = U36935TG2014PTC095781

Company & Directors' Information:- C & N INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U40200TG2014PTC095187

Company & Directors' Information:- B S B INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U45200TG2013PTC088059

Company & Directors' Information:- R A R INDUSTRIES PRIVATE LIMITED [Active] CIN = U74900TG2016PTC103684

Company & Directors' Information:- K S A B INDUSTRIES PRIVATE LIMITED [Active] CIN = U51909WB2012PTC181903

Company & Directors' Information:- S V S INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U36100JK2013PTC003808

Company & Directors' Information:- K H HOTELS PRIVATE LIMITED [Strike Off] CIN = U55101CH2010PTC032013

Company & Directors' Information:- G. I. HOTELS PRIVATE LIMITED [Active] CIN = U70101CH2001PTC024502

Company & Directors' Information:- M R HOTELS PRIVATE LIMITED [Active] CIN = U55101DL2006PTC154088

Company & Directors' Information:- L. R. HOTELS PRIVATE LIMITED [Strike Off] CIN = U55101DL2006PTC152879

Company & Directors' Information:- R D M INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U31100DL2013PTC252294

Company & Directors' Information:- M R B HOTELS PRIVATE LIMITED [Strike Off] CIN = U74899DL2005PTC143335

Company & Directors' Information:- INDUSTRIES INDIA PRIVATE LIMITED [Strike Off] CIN = U00349KA1947PTC000501

Company & Directors' Information:- A.T. HOTELS PRIVATE LIMITED [Strike Off] CIN = U55101GJ2008PTC052847

Company & Directors' Information:- B. M. HOTELS PRIVATE LIMITED [Active] CIN = U55101GJ2010PTC059327

Company & Directors' Information:- A V K INDUSTRIES INDIA PRIVATE LIMITED [Strike Off] CIN = U52100KA2012PTC066761

Company & Directors' Information:- S V INDUSTRIES PVT LTD [Strike Off] CIN = U27104WB1960PTC024715

Company & Directors' Information:- J INDUSTRIES PVT LTD [Strike Off] CIN = U18101OR1960PTC000388

Company & Directors' Information:- A K HOTELS PRIVATE LTD. [Strike Off] CIN = U55101DL1986PTC026543

Company & Directors' Information:- T & M INDUSTRIES LIMITED [Liquidated] CIN = U99999TN1956PLC002904

Company & Directors' Information:- ANNAMALAI CORPORATION PRIVATE LIMITED [Liquidated] CIN = U91110TN1956PTC000180

Company & Directors' Information:- C AND S HOTELS PRIVATE LIMITED [Strike Off] CIN = U55101DL2006PTC149702

Company & Directors' Information:- J. M. HOTELS PRIVATE LIMITED [Strike Off] CIN = U55101DL2007PTC165076

Company & Directors' Information:- INDUSTRIES (INDIA) PRIVATE LIMITED [Under Process of Striking Off] CIN = U51109BR1946PTC000228

Company & Directors' Information:- CORPORATION BANK LIMITED [Strike Off] CIN = U99999KA1972PLC001067

Company & Directors' Information:- K INDUSTRIES LIMITED [Not available for efiling] CIN = U99999MH1946PTC005438

    Second Appeal No. 587 of 2010 & M.P. No. 1 of 2010

    Decided On, 25 August 2020

    At, High Court of Judicature at Madras

    By, THE HONOURABLE DR. JUSTICE G. JAYACHANDRAN

    For the Appellants: Rajalakshmi, Shivakumar, Advocates. For the Respondent: Mukunth for M/s. Sarvabhuman Asso., Advocates.



Judgment Text


(Prayer: Second Appeal has been filed under Section 100 of C.P.C., praying to set aside the decree and judgment in A.S.No.2 of 2007 dated 23.10.2009 passed by the First Additional District Judge of Coimbatore partly reversing the judgment and decree dated 15.09.2005 passed in O.S.No.685 of 2002 on the file of Second Additional Sub Judge of Coimbatore.)

(The case has been heard through video conference)

1. Small Industries Development Bank of India (in short “SIDBI”) is a financial institution under the supervision of Reserve Bank of India. Its object is to provide financial assistance to the Small Scale Sectors. M/s Annamalai Hotels (P) Ltd, sought Rs.160 lakhs term loan from SIDBI for their hotel project and paid 1% upfront fee. In principle, loan was sanctioned, but before the disbursement of the loan, the sanction was withdrawn by SIDBI. The suit for return of upfront fee filed by M/s Annamalai Hotels was decreed by the Trial Court and the same was confirmed by the first Appellate Court. Against the concurrent finding, the present Second Appeal is filed by SIDBI.

2. For sake of convenience, the appellant/defendant the SIDBI (hereinafter be referred as “Bank”) and the respondent/plaintiff M/s Annamalai Hotel (P) Ltd (hereinafter be referred as “Applicant”).

3. On 18/01/1998, M/s Annamalai Hotels ( Pvt.) Ltd.. applied to the Deputy Manager of SIDBI at Coimbatore to extend term loan of Rs.160 lakhs to meet the part cost of its project of construction of a new hotel complex at Coimbatore. After discussions with the Applicant, on 05/04/1999, the application for financial assistance under project financial scheme was positively considered by SIDBI and informed the Applicant that SIDBI is agreeable, in principle, to grant term loan not exceeding Rs.160 lakhs to meet the project for setting up the hotel complex at the estimated cost of Rs.310 lakhs. In the letter dated 05/04/1999, the applicant was asked to furnish within 30 days the Board of Director resolution agreeable to enter into a Loan Agreement with SIDBI. The Applicant was also asked to provide a statement of anticipated drawals of loans including probable dates(s) and amounts of drawal(s). To this letter, Annexure I carried the special terms and condition. Under Clause 3 of the Annexure I, the Applicant shall pay to SIDBI non – refundable upfront fee of 1% of the sanctioned loan amount at the time of issue of Letter of Intent. Annexure II, the Normal terms and conditions for grant of financial assistance and Annexure III, the proforma for the Board Resolution.

4. As per Clause 3 In annexure I- Special terms and conditions upfront fee of 1% (Rs.1.60 lakhs) of the sanctioned loan amount (Rs.160 lakhs) was paid by the Applicant, on 05/04/1999, through a demand draft and the same was encashed by the Bank. On 10/04/1999 Board resolution was passed authorizing its Director V.Sampath Kumar to sign on behalf of the applicant. However, the Loan Agreement between the parties was not formally entered and the loan amount was not disbursed. Nearly after one year, in response to the Applicant query, the bank on 27/04/2000 informed the Applicant that the subsequent to issue of the letter of intent dated 05/04/1999, it came to their notice certain vital information having direct bearing on the creditworthiness of the company promoters/directors. Information relating to an associate/sister concern had not been disclosed by the company while applying for the term loan or during the discussions. Therefore, they are constrained to cancel the term loan sanctioned vide, letter of intent dated 05/04/1999.

5. In the above circumstance, the applicant has filed the suit against the Bank for refund of Rs1,60,000/-being the principal. Rs.57,600/- towards interest at the rate of 12% and Rs.9000/- towards Engineer fees paid to get the project report.

6. The Bank resisted the suit, on the ground that the suit is bad for misjoinder of party. The upfront fee collected is non refundable. It is a prerequisite for sanctioning the loan and paid pursuant to the terms of contract after arriving at a consensus- ad –Idem. After issuance of the letter of intent dated 05/04/1999, the Bank came to know that M/s TVS Bricks a sister concern of the Applicant had a over due of Rupees One Lakh in City Union Bank since January 1997. The overdue was cleared on 18/05/1999 ( i.e two days prior to obtaining the statement of accounts furnished to SIDBI for availing the term loan of Rs.160 lakhs). The Applicant wantonly and willfully suppressed the vital fact during the preliminary discussion prior to issuance of letter of intent. This shows the uncreditworthiness of the applicant company and its promoters. If this vital information was made known during the preliminary discussion, the Bank would not have issued in principle sanction of term loan.

7. The trial Court framed the following issues:-

1. Whether the suit is not maintainable for misjoinder of first defendant?

2. Whether the plaintiff is entitled for refund of Rs.1,60,000-00?

3. Whether the 2nd defendant denied loan for breach of terms and conditions and for suppression of facts?

4. Whether the plaintiff is entitled for recovery of money as prayed for?

5. What relief?

8. The trial Court after analysing the sequence of events, held that immediately after receipt of the letter of intent, the upfront fee was paid by the applicant on 05/04/1999. The contract will get completed only on executing the loan agreement. Even before execution of loan agreement mentioned in the letter of intent and disbursement of the loan, the bank has withdrawn its intent to grant loan. The bank should have tested the creditworthiness of the applicant before issuance of the letter of intent. Hence, the Bank is liable to return the upfront fee Rs.1.60 lakhs and Rs.9000/- the expense incurred for obtaining the project report with 12% interest.

9. In the first appeal preferred by the bank, the first appellate court substantially concurred with the trial court. It confirmed the judgment and decree of the trial court with modification by dismissing the claim in respect of Rs.9000/- paid as Engineer fees to get the report. Also the rate of interest to the principal was reduced from 12% to 7.5% from the date of remittance to the date of suit and thereafter at the rate of 6% pa.

10. The learned counsel for the appellant bank submitted that the courts below failed to consider the fact that the upfront fee is collected for the purpose of processing the loan application and paid as per the agreed terms of contract. Therefore the plaintiff is estopped from seeking refund of it. There is no legal obligation on the part of the bank to prove the expenses incurred for processing. Non refundable upfront fee cannot become refundable because it was paid prior to execution of the loan agreement. The special terms and condition of the letter of intent will override the general terms and condition contained in the draft agreement. The learned counsel for the appellant circulated the following judgments to persuade the court to reverse the finding of the Courts below.

1. CDJ 2006 Cal HC 569: Delta Fabrics (Pvt) Ltd –vs- Industrial Development Bank of India.

2. M/s Debonair Fashions Pvt Ltd and others –vs- Union of India dated 08.07.2019

3. CDJ 2020 SC 296: Bank of India –vs- Brindavan Agro Industries(Pvt) Ltd.

11. Per contra, the learned counsel for the respondent/plaintiff submitted that, the Loan application was made during the month of December 1998. (Ex.B-1, dated 04/12/1998) The letter of intent was issued on 05/04/1999. (Ex.A-1 = Ex. B-3). The statement of the City Union Bank indicating there is no due with them is dated 18/05/1999. (Ex.B-12). The bank took more than a year to cancel the letter of intent quoting adverse information about the creditworthiness. The outstanding loan of Rs.one lakh in the City Union Bank by one of the promoter was cleared immediately after the bank informed about their ‘in principle sanction’ of term loan. There was no suppression of fact as contented by the Bank. The upfront fee is payable only on execution of loan agreement. Unless the loan agreement is executed, the loan will not be sanctioned. In this case only letter of intent was issued. The loan agreement was not entered between the bank and the Applicant. However in advance, the upfront fee was paid in anticipation. Once the bank decided not to sanction loan, the upfront fee of Rs.1,60,000/- is bound to be returned. The bank cannot enrich themselves unjust. Had the upfront money paid after sanction of loan, it will become non-refundable. If loan is not sanction, there is no quid pro-quo for the upfront fee paid. Therefore it has to be refunded.

12. Heard the rival submissions placed by the learned counsels on either side.

13. The letter of indent dated 05/04/1999 disclose the following facts and events:-

18/12/1998: Application for term loan by M/s Annamalai Hotels (Pvt) Ltd to SIDCO.

05/04/1999: Letter of Intent by SIDCO intimating they are agreeable in principle to grant loan not exceeding Rs.160 lakhs, subject to:

a) the General Conditions GC -5-94 deemed to be part of the letter of intent and the special terms and conditions set out in Appendix- I.

b) The applicant shall enter into a Loan Agreement with SIDBI (as per the specimen form of Loan agreement in Appendix II).

c) The certificate copy of the Applicant Company Board Resolution to the effect , the applicant is agreeable to enter into the loan agreement within the time stipulated by SIDBI a nd till such agreement is executed there is no obligation or commitment on the part of SIDBI to advance any money.( emphasis added).

14. In Appendix –I of Ex A-1, clause 3 reads as under: Upfront fee: The company shall pay to SIDBI non-refundable upfront fee of 1% of the sanctioned loan amount at the time of issue of Letter of Intent.

15. Soon after the receipt of the letter of intent Ex A-1, the applicant has paid Rs.1,60,000/- the 1% of the sanctioned loan amount. But, the parties did not enter into the loan agreement as per the specimen form given in Appendix II. It is contented by the learned counsel for the appellant that the Bank collected the upfront fee for processing the loan application and they have incurred expenses for processing the application. In the given facts of the case, such a plea is not sustainable. The upfront fee was demanded only after processing the application and on being satisfied in principle to grant loan. Fees from the Applicant was not collected for processing. The purpose of collecting processing fee is entirely different from the purpose of collecting upfront fee.

16. In Delta Fabrics (Pvt) Ltd –vs-Industrial Development Bank of India case cited supra, relied by the Bank, the upfront fee was collected and thereafter parties negotiated terms of the agreement. The customer did not agree with the terms prescribed by the bank. The bank ultimately cancelled the sanction. The customer accepted the cancellation, however, asked for refund of upfront fee which was refused by the bank. Writ petition filed by the customer before the High Court, Calcutta. The learned Single Judge dismissed the writ petition holding that, the fee collected was for processing the loan application, which the bank is entitled to collect. Whether such fees was on higher side or can not be examined under writ jurisdiction. On appeal, The Division Bench of the Calcutta High Court dismissed the appeal and held that,

“(12).........The writ petitioner prayed for accommodation of Rs.1210.00 lacs. The appellant bank, however, granted them sanction of Rs.650.00 lacs. At that juncture the Bank asked the writ petitioner to pay the unfront fee. There was no stipulation made by the petitioner for refund of the said fee. The petitioner also understood such demand as legally payable by them and as such they paid the same. In this regard, Mr.Panja drew our attention to Clause 1(iii)of the draft agreement by which it was stipulated that the company would be liable to pay unfront fee at the time of issue of letter of intent. Drawing out attention to such clause, Mr.Panja contended that such clause was tobe incorporated in the agreement which was never entered into. Hence, such clause could not be enforced. Mr.Panja's argument in our view on this score could have been well-founded had it been made at the stage when such demand was raised. The petitioner understood the demand of the Bank as a precondition to get the sanction. Accordingly, they paid the amount. On the ground that the agreement was not entered into the petitioner was not entitled to claim for refund specially when the bank was ready and willing to grant the loan by making a promise through its letter of intent by sanctioning the loan. (emphasis added)

(13) The problem could be viewed from another angle. The dictionary meaning of the word “fee” is “charge” in terms of money against the service rendered”. From such meaning it is clear that unless it is paid in advance question of refund would not come. In the instant case, the money was paid not along with the application made for sanction. It was paid at a later stage when the Bank came to a final decision that they would grant loan and accordingly sanctioned the same and issued the letter of intent to that extent. Hence, there could be no question of refund of such fee.”

17. In M/s Deonair Fashions Pvt Ltd and another –vs- Union of India and others, relied by the Bank, the writ petitioner approached the bank for credit facility. Despite the sanction granted, due to suppression of material facts, the bank did not disburse the loan amount. Petition filed for refund of the processing fees Rs.8.20 lakhs. The petition was dismissed by the court on the ground that, the sanction letter contain a condition that, the Bank is entitled to processing fee. The bank is justified in not disbursing the loan since the petitioner suppressed the proceedings against them under the SARFAESI Act. Hence the question of refund the processing fee does not arise.

18. In Bank of India –vs- Brindavan Agro Industries Pvt Ltd., CDJ 2020 SC 296, case, based on the loan application dated 15/10/2011 submitted by the customer, the Bank handed over the papers to the Credit Processing Unit (CPU) for valuation /search report of the properties to be mortgaged and Techno Economic Viability(TEV) study. Meanwhile, on 4/11/2011 the customer revised its credit required seeking additional credit facilities. The revised request was also forwarded for TEV study. Soon thereafter on 17/12/2011, the customer again revised its credit requirement reducing the LC from Rs.25 crores to Rs.19 crores. On 30/12/2011 the bank debited a sum of Rs.27,41,161/- from the account of the customer being 50% of the applicable processing fees including TEV study and service tax charges. The customer objected to the deduction of processing fee as the bank could only do so after the loan was sanctioned. It sought for refund of the said amount on the ground of suffering losses, owing to the alleging delay of the bank in sanctioning the credit facilities. However, the Bank sanctioned the loan on 17/03/2012. In the interregnum period , the customer approached two other banks and got loan sanctioned.

19. For refund of the process fees deducted from the account, the customer approached the State Consumer Dispute Redressal Commission (SCDRC). The State Commissioner allowed the application directing the Bank to refund Rs.27,41,161/- with 9 % interest. The National Commission confirmed the award of the State commission with few modification. On appeal to the Supreme Court, after analyzing the Bank’s circular dated 20/04/2005 regarding the procedure for sanction of loan held that, the consumer is not entitled for refund of processing fees, but relying upon the Bank circular regarding 60% refund of TEV charges in case of non sanction of limits by the bank and the bank agreement to refund Rs.9.16 lakhs, directed the Bank to refund the amount agreed.

20. In all the above judgments, the Banks have placed before the court that money was collected for processing the loan application and also positively demonstrated to the court that they have spent on processing the application. Processing by engaging experts to study about viability or investigate the credit worthiness of the customer. Whereas, in the instant case, there is no evidence to show that the bank collected the money as processing fee or after receipt of the upfront fee incurred any expenses for processing. Further, the reason for refusing to advance loan also had come out belatedly after a year from collecting the upfront fee and the reason could not seem to the real reason for withdrawal of intent.

21. According to the Bank, in its written statement it is averred that, the upfront fee is charged since the second defendant has to incur expenses for its officers/staff for appraisal/studying the project, to verify the applicant/documents submitted for availing for loan. Further it is contended that, the upfront fee paid is not for making disbursement of the term loan but it is only for enabling the second defendant to issue letter of intent and other further activities related thereto. Whereas we find, the upfront fee is demanded only after issuance of the letter of intent on 05/04/1999. The applicant has submitted letter from City Union Bank that M/s TVS Bricks have no dues with it. The letter is dated 18/05/1999. The Bank in the written statement had contended that, a sum of Rs. one lakh was due with City Union Bank from 1997, it was cleared only 2 days prior to the statement. Though the amount was only Rs. one lakh, yet it shows the creditworthiness of the company and its promoter.

22. The judgments cited by the appellant counsel is of no assistance to their case since in the instant case, the fee was collected specifically under the head ‘Upfront fee’ and not under ‘processing fee’. The fee was not collected along with application for loan but after issuance of letter of intent. Even if the fee was used for processing as now contended by the bank, nothing placed before the trial court to substantiate the said plea. Furthermore, if they had good reason to withdraw the letter of intent, it should have been expressed to the applicant at the earliest point of time and not after one year that too as a response to the query from the Applicant.

23. In a financial contract, the banker cannot be compelled to advance loan to a person whose creditworthiness is not inspiring. It is the prerogative of the bank to choose its customer. However, when a fee is collected on the promise that they are satisfied with the project and in principle agree to advance loan, then refuse to advance loan, keeping the customer guessing for more than a year cannot be in tune with the general principle of contract law or to the special terms and condition. It amounts to breach of promise and unjust enrichment.

24. The Division Bench of the Andra Pradesh High Court in Punjab National Bank, Rep. by its Chief Manager Large Corporate Branch -Versus- Gangavaram Port Limited, Rep. by its Authorized Signatory, Manager - Administration reported in 2017 CDJ APHC 398 had explained the term upfront fee as below:-

“13. From the rival contentions and the grounds of appeal, it appears that the following points arise for determination:

(a) Whether in the light of Article 2.9(b) of the Common Loan Agreement, the Court was justified in ordering the refund of the upfront fee, when the parties had mutually agreed that the same shall be non-refundable?

(b) Whether the breach of the agreement was on the part of the plaintiff, entitling the bank to invoke the non-refundable clause?

(c) Whether the refund of part of the Up front Fee by the bank can be taken to be an indication that the upfront fee was not to be treated as non-refundable? And

(d) Whether the Court below was right in awarding interest?

Point (a):-

14. The first point arising for determination is as to whether in the light of Article 2.9(b) of the Common Loan Agreement, the up front fee can be treated to be refundable.

15. There can be no doubt about the legal position that parties to a contract are bound by the terms of the contract. Therefore, generally a fee which is prescribed under an agreement to be non-refundable cannot be directed to be refunded. But there are exceptions to this universal rule.

16. The contention of Mr. Ambadipudi Satyanarayana, learned counsel for the appellant/bank, is that the clause regarding non-refundability of the upfront fee was not a clause in terrorem, but was intended to compensate the bank for blocking funds to the tune of Rs.100 Crores from the date of sanction until the date of disbursement. Though it is not contended by the learned counsel for the appellant nor has it been raised by the bank in the written statement in so many words, we can take it that the bank wanted to treat this upfront fee as an opportunity cost for making available a sum of Rs.100 Crores at all times (on call) from the date of sanction of the loan till disbursement.

17. At the outset, it should be pointed out that there is no pleading to the effect that the upfront fee was intended to compensate the Bank for keeping an amount of Rs.100 crores available for disbursement. Moreover, if it was actually an opportunity cost, the bank should have normally used the expression “commitment fee”. We can take judicial notice of the fact that in banking parlance, what is charged by lending institutions for blocking a quantum of funds and making them available for the borrowers to withdraw at any time they want, is “commitment fee”.

18. Let us ignore for the present, the nomenclature used and take it that the upfront fee was intended as a compensatory cost for making available a sum of Rs.100 Crores for the benefit of the borrower. Even if we treat the upfront fee paid by the respondent in such a manner, the same would become non-refundable only if anyone or more of the following two conditions are satisfied:

(i) That the bank, in fact, kept locked a sum of Rs.100 Crores for a specified duration of time and hence they became entitled to appropriate the upfront fee

(ii) That there was no breach of the contractual obligations on the part of the bank, but only a breach on the part of the

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borrower.” 25. In the instant case under consideration by this court, the sanction loan amount is Rs.160 lakhs, upfront fee paid is Rs.1,60,000/-. This would become non-refundable only if any of the following two conditions are satisfied: (i) That the Bank, in fact, kept locked a sum of Rs.160 lakhs for a specified duration of time and hence they became entitled to appropriate the upfront fee. (ii) That there was no breach of the contractual obligations on the part of the bank, but only a breach on the part of the borrower. In this case the Bank never pleaded in the written statement that they blocked an amount of Rs.160 lakhs to be disbursed to the plaintiff. Neither the bank informed the applicant about their cancellation of letter of intent in time. In fact, this court could see from Ex.A2 the Bank have taken nearly one year after receipt of the upfront money to inform their intention to cancel the letter of intent. That too after the applicant wrote a letter dated 28/03/2000 demanding refund. 26. In this case, bank had pleaded that there was suppression of fact touching upon the creditworthiness of one of applicant company promoter. Their inference about the creditworthiness of the applicant was not made known to the Applicant in time. After issuance of the letter of intent before commencement of disbursement of loan, three events should have followed. First, Board Resolution authorizing any one from the applicant company to represent them and sign the loan agreement. Second, execution of loan agreement between the applicant company and SIDBI and Third, payment of upfront fee of 1% and inform the schedule of disbursement of loan. 27. The facts on record show that the 1% upfront fee paid on 05/04/1999. The Board of Directors of the applicant company has passed resolution on 10/04/1999 authorizing a person to represent them. Thereafter in normal course the parties should have entered into loan agreement and based on the terms of the loan agreement, loan amount should have been disbursed. In this case, the last two events never happened. 28. Based on the records it is clear that the money collected under the head upfront fee retained by the bank without any quit pro quo for more than a year without any assignable reason. Hence, the decree passed by the first appellate court is to be confirmed. 29. Accordingly, the Second Appeal is dismissed with costs. Consequently, connected Miscellaneous Petition is closed.
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25-09-2020 Mallappa & Another Versus The State of Karnataka, Rep. by State Public Prosecutor, Dharwad High Court of Karnataka Circuit Bench At Dharwad
24-09-2020 Ani & Others Versus State of Kerala, Rep. by The Prosecutor, High Court of Kerala & Another High Court of Kerala
24-09-2020 Yogesh Agarwal & Others Versus State of Karnataka, Rep. herein by: The Investigation Officer Cyber Crime Police Station (CID), Bengaluru & Another High Court of Karnataka
24-09-2020 Raghavan & Another Versus State of Kerala Rep. by Chief Secretary, Thiruvananthapuram & Others High Court of Kerala
23-09-2020 Maharudragouda Versus The State of Karnataka, Rep. by Ranebennur Town Police, Dharwad High Court of Karnataka Circuit Bench At Dharwad
23-09-2020 Rajegowda @ Guruswamy & Another Versus State of Karnataka, Rep. by its State Public Prosecutor, Bangalore & Another High Court of Karnataka
23-09-2020 C.M. Gadha & Another Versus Bar Council of India, New Delhi, Rep. by Its Secretary & Others High Court of Kerala
23-09-2020 Heer A. Rajani, Rep. by her Power of Attorney Amit M. Rajani Versus M.M. Syed Sikkander, Proprietor: M/s. Syed Bearing Centre, Chennai High Court of Judicature at Madras
23-09-2020 Nagalakshmi (died) & Another Versus Sivaprakasam, Rep.by his Power Agent and his wife Senthamil Selvi High Court of Judicature at Madras
23-09-2020 Tousif Versus The State of Karnataka, Rep. by Addl. State Public Prosecutor, Dharwad & Another High Court of Karnataka Circuit Bench At Dharwad
22-09-2020 Ramesh Versus The State of Karnataka, Rep. by its State Public Prosecutor, Dharwad High Court of Karnataka Circuit Bench At Dharwad
22-09-2020 Akshay Kumar Jaiswal Versus The State of Assam, Rep. By The PP, Assam & Another High Court of Gauhati
22-09-2020 G. Hariram Versus The Regional Director Reserve Bank of India, Bengaluru & Others High Court of Karnataka
21-09-2020 Jantra Wanida & Others Versus State of Karnataka, Rep. by SPP, Bengaluru & Others High Court of Karnataka
21-09-2020 M.R. Vasumathi & Another Versus The Authorized Officer, Indian Bank, Chennai & Others High Court of Judicature at Madras
21-09-2020 State Bank of India Versus Vineet Agrawal, Assistant Commissioner of Income Tax & Others High Court of Judicature at Bombay
21-09-2020 Shivanand Versus The State of Karnataka, Rep. by its Secretary Dept. of Revenue, Bengaluru & Others High Court of Karnataka
21-09-2020 Yellappa Versus The Management of NWKRTC, Rep. by its Divisional Controller, Gadag High Court of Karnataka Circuit Bench At Dharwad
19-09-2020 National Investigation Agency Chikoti Garden, Begumpet, Hyderabad, Rep. by A.G. Kaiser Versus Vinay Talekar & Others In the High Court of Bombay at Goa
18-09-2020 K. Murugan: Petitioner in W.P (MD). No. 2547/15 T. Velladurai, Petitioner in W.P (MD). No. 2548/15, Versus The Block Development Officer, (Village Panchayat), Panchayat Union Office, Alangulam & Others Before the Madurai Bench of Madras High Court
18-09-2020 B. Ramamoorthy & Another Versus The State of Tamil Nadu, Rep. by its Secretary, Legislative Assembly Secretariat, Chennai & Others High Court of Judicature at Madras
18-09-2020 M/s. Standard Metalloys Private Limited, through its Authorised Signatory Sumit Tripathi Versus Union of India Rep. by its Secretary, Ministry of Mines & Others High Court of Andhra Pradesh
18-09-2020 M/s. Tamilnadu Mercantile Bank Ltd., Nerkundram Branch, Represented by Through its Authorized Officer, Chennai versus The District Magistrate/The District Collector, Office of District Collectorate, Thiruvallur High Court of Judicature at Madras
18-09-2020 Thankappan Pillai Versus State of Kerala, Rep. by The Public Prosecutor, High Court of Kerala High Court of Kerala
17-09-2020 Vangamudi Kasimayan, Kurnool DT. Versus State of AP., rep PP. High Court of Andhra Pradesh
17-09-2020 Anandi Versus State, Rep. by The Public Prosecutor, High Court of Kerala, Ernakulam & Another High Court of Kerala
17-09-2020 Mahasamy Versus Minor Prakash, Rep. By his father & natural guardian Rajendran, Tiruppur & Another High Court of Judicature at Madras
16-09-2020 R. Pradeep Versus State of Karnataka, Rep. by The Public Prosecutor, Bangalore High Court of Karnataka
16-09-2020 Atmesh Kumar Roy Versus Madhya Bihar Gramin Bank & Another High Court of Judicature at Patna
16-09-2020 Leitwind Shriram Manufacturing Private Limited, Rep. by its General Manager, Gomathythamarai Selvi Versus GR Green Life Energy Pvt. Ltd., Pune High Court of Judicature at Madras
15-09-2020 Nandlal Madanlal Zawer Versus Chairman, State Bank of India & Another National Consumer Disputes Redressal Commission NCDRC
15-09-2020 P.C. Latha & Others Versus State of Kerala, Rep. by The Public Prosecutor, High Court of Kerala, Ernakulam & Others High Court of Kerala
15-09-2020 Sandip Kumar Bajaj & Another Versus State Bank of India & Another High Court of Judicature at Calcutta
15-09-2020 G. Annamalai Versus The Managing Director, Metropolitan Transport Corporation Ltd., Chennnai High Court of Judicature at Madras
15-09-2020 Makdum @ Makdum Shariff Versus State of Karnataka, Rep. by HCGP, Bangalore High Court of Karnataka
14-09-2020 Sapna Chouhan & Another Versus State, Rep. by Public Prosecutor, Bengaluru High Court of Karnataka
14-09-2020 Zameer Versus State of Karnataka, Rep. by State Public Prosecutor, Bangalore High Court of Karnataka
14-09-2020 Kuruva Muliniti Lakshmana, Kurnool DT. Versus State of AP., Rep. PP. Hyd. High Court of Andhra Pradesh
14-09-2020 Tuticorin Stevedores' Association, Rep.by its Secretary, Tuticorin Versus The Government of India, Rep.by its Secretary, Ministry of Shipping, New Delhi & Others Before the Madurai Bench of Madras High Court
14-09-2020 Dr. Varghese Perayil Versus The Election Commission of India, New Delhi, Rep. by Its Secretary & Others High Court of Kerala
14-09-2020 Tamil Nadu Atomic Power Employees Union (A Government of India Enterprise), Rep.by its President, Kanchipuram Versus Nuclear Power Corporation of India Ltd., (A Government of India Enterprise), Rep.by its Senior Manager(Personal & Industrial Relations), Madras Atomic Power Station, Kanchipuram High Court of Judicature at Madras
11-09-2020 Mukund Versus The State of Karnataka, Rep. by its Secretary, Bengaluru & Others High Court of Karnataka Circuit Bench At Dharwad
11-09-2020 B.S. Yediyurappa Versus State of Karnataka, Rep. by State Public Prosecutor, Dharwad & Another High Court of Karnataka Circuit Bench At Dharwad
11-09-2020 M/s. S.M. Cement Industries Rep. By One of Its Partners Namely, Manoj Sureka, Assam Versus Power Distribution Company Ltd. & Others High Court of Gauhati
11-09-2020 Shyam Investments, Rep. by its Partner Nina Reddy & Another Versus Masti Health & Beauty Pvt. Ltd., Hyderabad High Court of Judicature at Madras
11-09-2020 Amarendra Bhagawati Versus The State of Assam Rep. By The Comm. & Secy., Deptt. of Excise, Govt. of Assam, Dispur, Ghy.-06 & Others High Court of Gauhati
10-09-2020 G. Chitra Poornima & Others Versus State of Karnataka, Rep. by Under Secretary Revenue Department & Others High Court of Karnataka
10-09-2020 Punitha Versus State by Turuvekere Police Turuvekere, Rep. by SPP, Bengaluru High Court of Karnataka
10-09-2020 United India Insurance Company Ltd., Rajasthan Versus M/s. Radhika Oil Industries, Rajasthan National Consumer Disputes Redressal Commission NCDRC
10-09-2020 Raina Begum Versus The Union of India Rep. By The Comm & Secy. to The Govt. of India, Home Deptt., New Delhi-01, India & Others High Court of Gauhati
10-09-2020 A. Sudharani Versus The State of Andhra Pradesh, Rep., by its Principal Secretary, Civil Supplies Department, Velagapudi, Guntur District & Others High Court of Andhra Pradesh
10-09-2020 K. Ravishankar Versus State of Tamil Nadu, Rep. by the Additional Chief Secretary to Government, Home, Prohibition & Excise Department, Chennai & Others Before the Madurai Bench of Madras High Court
09-09-2020 Santosh @ Sada Mahadev Chand Rakodi Versus The State of Karnataka, Rep. by SPP, Dharwad High Court of Karnataka Circuit Bench At Dharwad
09-09-2020 Vidarbha Irrigation Development Corporation, through Executive Engineer, Minor Irrigation Division, Nagpur Versus Laxman Seetaram Neulkar & Another In the High Court of Bombay at Nagpur
09-09-2020 Padmavathi Hospitality and Facilities Management Service, Rep. by its Authorized Representative J. Anjananandan Versus The Tamil Nadu Medical Service Corporation, (A Government of Tamil Nadu undertaking), Chennai & Others High Court of Judicature at Madras
09-09-2020 R. Bharaneeswaran Versus The Government of Tamil Nadu, Rep. by its Secretary, School Education Department, Chennai & Others High Court of Judicature at Madras
08-09-2020 Jai Bharath College of Management & Engineering Technology, Rep. by Its Chairman, Ernakulam & Others Versus The State of Kerala, Rep. by Its Secretary to Government, Higher Education Department, Trivandrum & Others High Court of Kerala
08-09-2020 The State of Tamil Nadu, Rep. by the Collector of the Nilgiris, Udhagamandalam Versus Janaki High Court of Judicature at Madras
08-09-2020 S. Jagannatha Rao Versus Air India Limited, Rep. by its Chairman and Managing Director, New Delhi & Others High Court of Judicature at Madras