DYNAMIC CONTINENTAL PVT LTD Vs. UCO BANK

JUDGEMENT

(1.) The Plaintiff, a private company, sues through its Director, Mr. Pawan Garg. It claims a declaration that no amount is payable to the Defendant (hereafter called "the bank") as repayment, or prepayment charges.

(2.) The Plaintiff is involved in the real estate business, particularly in the development of shopping-malls-cum-multiplexes in Ludhiana. It decided to construct a shopping-mall-cummultiplex called "Flamez" at the premises, measuring 4140 square yards in area, owned by the Plaintiff at Gurdev Nagar, Ludhiana. For this purpose the Plaintiff applied for a term loan from the Defendant. The estimated total cost of the project at the time was approximately Rs. 33 crores.

(3.) The Bank sanctioned a term loan of Rs. 18 crore on 20.5.2005, to partly finance the cost of the project on certain terms and conditions. The loan sanction document stated that the loan would be repayable-