AAP INFRASTRUCTURES LTD. Vs. BANK OF BARODA

JUDGEMENT

(1.) This petition has been filed by the petitioner with the following prayers:-

(2.) In substance, the challenge in this writ petition is, to a communication dated May 14, 2018 whereby the petitioner was communicated the decision of the Bank to declare the petitioner a willful defaulter.

(3.) It is the submission of Mr. Sandeep Sethi, learned Senior Counsel appearing for the petitioner that the petitioner is a Public Limited Company. On November 18, 2002, a Concession Agreement was entered between the Madhya Pradesh Road Development Corporation and the petitioner for reconstruction, strengthening, widening and rehabilitation of Seoni- Balaghat-Rajegaon Section of State Highway 11 and 26 Road in the state of Madhya Pradesh on Built, Operate & Transfer basis. In the year 2008, the project was completed and tolling started through O&M and Tolling contract, MBL. A request was made by the petitioner to the respondent No.1 for term loan of Rs.50 Crores for toll securitization. The respondent no.1 Bank sanctioned term loan of Rs.50 Crores at 12% interest p.a. for repayment of existing term loan of Punjab National Bank and for utilization in projects of promoter / holding company MBL.