VISTRA ITCL (INDIA) LIMITED Vs. LALIT KUMAR JAIN

JUDGEMENT

(1.) The defendants have moved the instant application seeking permission to sell one of the properties standing in the name of defendant no. 3 for a net consideration of approximately Rs.74.00 crores, subject to terms that may be imposed by the Court. The property is stated to be situate at Shanti Niketan Phase III, Survey No. 138, Hissa No. 5 admeasuring 13376.55 square meters located in Village Pashan, Taluka Mulshi, District Pune. For the purposes of evaluating the prayer that is made, the following essential facts may be noticed in brief.

(2.) The suit itself is for recovery of monies asserted to be due and payable by the defendants to the plaintiff. It came to be registered on 28/5/2019. While issuing summons on the suit, the Court in its order of 28/5/2019 noticed the essential facts as follows. The plaintiff no. 2 is stated to have entered into a Debentures Subscription Agreement [DSA] dtd. 5/12/2014 along with defendant nos. 1 to 4. The Series A Tranche 1 Debentures were valued at INR 160 crores while Series A Tranche 2 at INR 40 crores. A separate DSA also came to be executed in respect of Series C DSA and comprised of Series C Tranche 1 aggregating INR 35 crores and Series C Tranche 2 amounting to INR 45 crores. In furtherance of the Debenture Trust Deeds which came to be executed in respect of Series A and Series C DSA, defendant No. 4 appointed plaintiff no. 1 as the trustee for the benefit of plaintiff no. 2.

(3.) Consequent to an alleged default, demand notices dtd. 5/10/2018 and 11/10/2018 came to be issued in terms of Sec. 13.2 of the Series A Debenture Trust Deed and Series C Debenture Trust Deed. The plaintiff alleges that the default was not cured. In fact, the defendants are stated to have questioned the allegation of default itself.