CITIBANK N A Vs. MOSER BAER INDIA LTD

JUDGEMENT

(1.) A petition was filed by Citi Bank, N.A. in CP No. 558/2012 under section 433(e) read with 434 of the Companies Act, 1956, seeking winding up of Moser Baer India Ltd. hereinafter referred to as the respondent or the respondent -company. The respondent had issued bonds to various bond holders in June, 2007. They were for US$ 75 million and were to be redeemed on 21.6.2012 at 135.07% in respect of tranche A and 139.39% of tranche B. The petitioner, which is a company incorporated in New York, USA was appointed the trustee for the bond holders under a trust deed. The respondent -company defaulted in redeeming the bonds on the due date. Notices sent in June/September, 2012 by the respondent -company for restructuring the bonds were later cancelled. Eventually the bonds remained to be redeemed and remain so till date.

(2.) THE respondent -company filed an appeal in Company Appeal No. 63/2013 before the Division Bench against the judgment dated 17th July, 2013. The appeal was however withdrawn on 4th September, 2013. While permitting the withdrawal of the appeal, the Division Bench in its order dated 11th September, 2013 issued the following directions:

(3.) THEREAFTER CA 2259/2013 was filed by the Central Bank of India which is the leader of the consortium of banks constituted under the Corporate Debt Restructuring Scheme ("CDR") seeking impleadment in the proceedings. The impleadment is allowed. CA No. 2091/2013 is an application filed by the petitioner seeking advertisement of the petition. Arguments were advanced by the learned senior counsel for the applicant on the one hand as well as by the learned counsel for the respondent, its workmen as well as the Central Bank of India.