RASMALA TRADE FINANCE FUND Vs. RAMAN GUPTA

JUDGEMENT

(1.) The Plaintiff has filed the present suit under Order XXXVII CPC praying for decree for a sum of USD 14,025,783 along with past due profit and late payment charges @ 2% for each days' delay. One M/s Met Trade (UAE) FZC (hereinafter "Met Trade") had availed of a Murabaha Facility Agreement (hereinafter, "Murabaha Facility") with the Plaintiff on 2nd May, 2016. As per the said agreement, the Plaintiff had given a facility of USD 10 million to M/s Met Trade. The agreement was signed by Mr. Raman Gupta, one of the directors of Met Trade. He was duly authorised by way of a board resolution dated 14th April, 2016 by Met Trade to enter into the said agreement with the Plaintiff. The Defendant - Mr. Raman Gupta had also executed a personal guarantee in favour of the Plaintiff in respect of this facility. Met Trade had also entered into an account pledge agreement dated 2 nd May, 2016, as a condition for availing of the Murabaha Facility.

(2.) Various other agreements were also entered into along with the said facility agreement. The Murabaha facility agreement was amended on 27th October, 2016 by which the facility was increased to 20 million USD. The facility's maturity date was extended for a period of 365 days, vide amendment dated 2nd April, 2017. The remaining terms of the facility remained unchanged.

(3.) Various amounts which were to be repaid under the Facility agreement, availed by Met Trade, however, remained unpaid. This was notified by the Plaintiff on 17th July, 2017. Met Trade responded by stating that the payment would be delayed till the end of July, 2017 as there was a delay in receiving payments of certain supplies from customers. Thereafter, a meeting was held on 29th July, 2017 between the Plaintiff and Met Trade for discussion of overdue payments, however, no payments were made. The telephonic conversation with the Defendant also did not yield any favourable result in respect of the delayed payment. Accordingly, the Defendant agreed for submitting a refinancing proposal by 25th September, 2017. However, no such proposal was shared. The Plaintiff then issued a demand letter in terms of clause 16 of the Murabaha Facility to Met Trade on 19th October, 2017 for a total sum of USD 14,170,227.72. Thereafter, a meeting took place between the parties in Delhi on 24th October, 2014. Again, request was made for sharing of the refinancing proposal, but the same was not shared. The amounts remained outstanding. Finally, since the Defendant did not take any steps to clear the payments, on 20th March, 2018 a notice was issued by the Plaintiff to the Defendant invoking the personal guarantee of the Defendant. The Plaintiff has, thereafter, filed the present suit invoking the guarantee under the Murabaha facility agreement.