ICICI BANK LTD. Vs. MINERVA TELELINK LTD.

JUDGEMENT

(1.) ICICI Bank Ltd. is the petitioner, which has filed this company petition seeking winding up of the respondent company. This petition is filed under Section 439 read with Sections 433(e) and 434 of the Companies Act, 1956 (hereinafter referred to as the 'Act'). The primary allegation is that the respondent company owes a sum of Rs. 4,20,97,018 (inclusive of interest calculated at agreed rate of 16.98% per annum) as on 8 July 2003 and the respondent has not paid this amount to the petitioner in spite of various demands as well as statutory notice issued under Sections 433 and 434 of the Act.

(2.) THE transaction unfolded in the petition relates in grant of loan in the sum of Rs. 3,00,00,000 which petitioner agreed to disburse to the respondent company for purchasing equipment for the advancement of the business of the respondent company. It was agreed that this loan shall be repayable within 12 months from disbursement and the equipments purchased would be hypothecated with the petitioner by way of security for the repayment of the loan. The managing director of the respondent company late Shri Ajay S. Bhartia had agreed to stand guarantee for the repayment of the loan amount. Property of respondent's sister concerns, viz., Minerva Holdings Ltd. and International Industries Ltd., were also offered as mortgage by way of collateral security. An equipment -cum -hypothecation agreement dated 30 November, 2001 was executed between the parties.

(3.) THE equipment purchased by the respondent out of the money advanced by the petitioner was hypothecated with the petitioner creating first charge in its favor which was duly registered with the register of charges maintained by the Registrar of Companies. The amount was also duly disbursed in 13 trenches (Specified parts of a larger loan transaction. For instance, in this case, each tranche comprised of a sum of Rs. 34,61,539 -Editor.) by the petitioner details whereof are given in para 13 of the petition. Each tranche comprised of a sum of Rs. 34,61,539.